SanDisk 2012 Annual Report Download - page 194

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other than sales in the U.S., South Korea and Taiwan, no individual country represented more than 10% of
the Company’s total revenues. Intercompany sales between geographic areas have been eliminated.
Revenue by geographic areas for fiscal years 2012, 2011 and 2010 were as follows (in thousands):
Fiscal years ended
December 30,
2012
January 1,
2012
January 2,
2011
United States ..................................................... $ 714,293 $ 853,830 $ 809,037
South Korea ...................................................... 347,882 374,662 334,173
Taiwan .......................................................... 980,323 1,419,836 993,787
Other Asia-Pacific ................................................. 2,139,504 2,101,967 1,822,853
Europe, Middle East and Africa ....................................... 642,494 688,538 714,378
Other foreign countries .............................................. 228,013 223,312 152,579
Total ........................................................ $ 5,052,509 $ 5,662,145 $ 4,826,807
Product revenues from customers are designated based on the geographic location to which the product is
delivered. License and royalty revenue is attributed to countries based upon the location of the headquarters of
the licensee.
Long-lived assets by geographic area as of the end of fiscal years 2012 and 2011 were as follows (in
thousands):
December 30,
2012
January 1,
2012
United States .................................................................. $ 257,655 $ 100,414
Japan ........................................................................ 661,393 673,898
China ........................................................................ 350,873 187,773
Other foreign countries .......................................................... 38,702 28,971
Total .................................................................... $ 1,308,623 $ 991,056
Long-lived assets are attributed to the geographic location in which they are located. The Company includes
in long-lived assets property and equipment, long-term equity investments in Flash Ventures and equity
investments, and attributes those investments to the location of the investee’s primary operations.
Customer and Supplier Concentrations. A limited number of customers or licensees have accounted for a
substantial portion of the Company’s revenues. Revenues from the Company’s top 10 customers or licensees
accounted for approximately 43%, 48% and 44% of the Company’s revenues for fiscal years 2012, 2011 and
2010, respectively. In fiscal year 2012, Apple Inc. accounted for 13% of the Company’s total revenues. In fiscal
year 2011, Samsung Electronics Co., Ltd. accounted for 10% of the Company’s total revenues. In fiscal year
2010, no customer accounted for 10% or more of the Company’s total revenues.
All of the Company’s flash memory system products require silicon wafers for the memory and controller
components. The Company’s memory wafers and components are currently supplied almost entirely from Flash
Ventures and the controller wafers are primarily manufactured by third-party subcontractors. The failure of any
of these sources to deliver silicon wafers could have a material adverse effect on the Company’s business,
financial condition and results of operations. Moreover, the employees of Toshiba Corporation (“Toshiba”) that
produce Flash Ventures’ products are covered by collective bargaining agreements and any strike or other job
action by those employees could interrupt the Company’s wafer supply from Toshiba’s Yokkaichi, Japan
operations.
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