Crucial 2012 Annual Report Download - page 9

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Geographic Information
Sales to customers outside the United States totaled $7.0 billion for 2012 and included $2.9 billion in sales in China, $1.0
billion in sales in Taiwan, $827 million in sales in Europe, $546 million in sales in Malaysia and $1.2 billion in sales in the rest
of the Asia Pacific region (excluding China, Malaysia and Taiwan). Sales to customers outside the United States totaled $7.4
billion for 2011 and $7.1 billion for 2010. As of August 30, 2012, we had net property, plant and equipment of $3.3 billion in
Singapore, $3.2 billion in the United States, $328 million in China, $163 million in Italy, $59 million in Israel, and $37 million
in other countries. (See "Item 8. Financial Statements and Supplementary Data – Notes to Consolidated Financial Statements –
Geographic Information" note and "Item 1A. Risk Factors.")
Patents and Licenses
In recent years, we have been recognized as a leader in per capita and quality of patents issued. As of August 30, 2012, we
owned approximately 16,900 U.S. patents and 3,300 foreign patents. In addition, we have numerous U.S. and foreign patent
applications pending. Our patents have various terms expiring through 2032.
We have a number of patent and intellectual property license agreements. Some of these license agreements require us to
make one-time or periodic payments. We may need to obtain additional patent licenses or renew existing license agreements in
the future. We are unable to predict whether these license agreements can be obtained or renewed on acceptable terms.
In recent years, we have recovered some of our investment in technology through sales or licenses of intellectual property
rights to joint venture partners and other third parties. We are pursuing additional opportunities to recover our investment in
intellectual property through additional sales or licenses of intellectual property and potential partnering arrangements.
Employees
As of August 30, 2012, we had approximately 27,400 employees, of which approximately 16,000 were outside the United
States, including approximately 7,800 in Singapore, 3,400 in Italy, 2,200 in China, 1,100 in Israel and 1,000 in Malaysia. Our
employees include approximately 1,600 in our IMFT joint venture, primarily located in the United States. Our employment
levels can vary depending on market conditions and the level of our production, research and product and process
development. Many of our employees are highly skilled and our continued success depends in part upon our ability to attract
and retain such employees. The loss of key personnel could have a material adverse effect on our business, results of
operations or financial condition.
Environmental Compliance
Government regulations impose various environmental controls on raw materials and discharges, emissions and solid
wastes from our manufacturing processes. In 2012, our wholly-owned wafer fabrication facilities continued to conform to the
requirements of ISO 14001 certification. To continue certification, we met annual requirements in environmental policy,
compliance, planning, management, structure and responsibility, training, communication, document control, operational
control, emergency preparedness and response, record keeping and management review. While we have not experienced any
material adverse effects to our operations from environmental regulations, changes in the regulations could necessitate
additional capital expenditures, modification of our operations or other compliance actions.
Directors and Executive Officers of the Registrant
Our officers are appointed annually by the Board of Directors and our directors are elected annually by our shareholders.
Any directors appointed by the Board of Directors to fill vacancies on the Board serve until the next election by the
shareholders. All officers and directors serve until their successors are duly chosen or elected and qualified, except in the case
of earlier death, resignation or removal.