Crucial 2011 Annual Report Download - page 84

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Depreciation and amortization expense was as follows:
Product Sales
Product sales were as follows:
Certain Concentrations
Market concentrations from 2011 net sales were approximately as follows: computing (including desktop PCs, servers, notebooks and
workstations), 30% ; mobile, 25% ; consumer electronics, 15% ; and networking and storage, 15% . Market concentrations from 2010 net sales
were approximately 45% computing and for 2009 net sales were approximately 30% computing. Customer concentrations for 2011 net sales were
approximately 10% with Intel, for 2010 net sales were 13% with HP and for 2009 net sales were 20% with Intel. Substantially all of our sales to
Intel in 2011 and 2009 were included in the NSG and WSG segments and substantially all of our sales to HP in 2010 were included in the DSG
segment.
Certain of the raw materials and production equipment we use in manufacturing semiconductor products are available from multiple sources
and in sufficient supply; however, only a limited number of suppliers are capable of delivering certain raw materials that meet our standards. In
some cases, materials are provided by a single supplier.
Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, money market accounts,
certificates of deposit and trade receivables. We invest through high-credit-quality financial institutions and, by policy, generally limit the
concentration of credit exposure by restricting investments with any single obligor. A concentration of credit risk may exist with respect to
receivables as a substantial portion of our customers are affiliated with the computing industry. We perform ongoing credit evaluations of
customers worldwide and generally do not require collateral from our customers. Historically, we have not experienced significant losses on
receivables. The 2011 Capped Calls, 2009 Capped Calls and 2007 Capped Calls expose us to credit risk to the extent that the counter parties may
be unable to meet the terms of the agreement. We seek to mitigate such risk by limiting our counter parties to major financial institutions and by
spreading the risk across several major financial institutions. In addition, the potential risk of loss with any one counter party resulting from this
type of credit risk is monitored on an ongoing basis. (See "Shareholders' Equity - Capped Call Transactions" note.)
81
2011
2010
2009
DSG
$
750
$
947
$
979
NSG
513
530
780
WSG
512
212
103
ESG
196
97
47
All Other
130
140
205
Depreciation and amortization expense included in operating income (loss)
2,101
1,926
2,114
Other amortization
61
79
72
Total depreciation and amortization expense
$
2,162
$
2,005
$
2,186
2011
2010
2009
DRAM
$
3,620
$
5,052
$
2,422
NAND Flash
3,193
2,555
1,857
NOR Flash
1,547
451
—
Other
428
424
524
$
8,788
$
8,482
$
4,803