Crucial 2012 Annual Report Download - page 88

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Product Sales
For the year ended 2012 2011 2010
NAND Flash $ 3,627 $ 3,193 $ 2,555
DRAM 3,178 3,620 5,052
NOR Flash 977 1,547 451
Other 452 428 424
$ 8,234 $ 8,788 $ 8,482
Certain Concentrations
Market concentrations from 2012 net sales were approximately as follows: computing (including desktop PCs, servers,
notebooks and workstations), 25%; consumer electronics, 20%; mobile, 15%; networking and storage, 10%; and solid state
drives, 10%. 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. Customer concentrations included 12% of
total 2012 net sales to Intel, 10% of total 2011 net sales to Intel and 13% of total 2010 net sales to HP. Substantially all of our
sales to Intel in 2012 and 2011 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, fixed-rate debt securities, trade receivables and derivative contracts. 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. A concentration of risk may also exist with respect to derivatives as the number of counterparties to our hedges is
limited and the notional amount is relatively large. We seek to mitigate such risk by limiting our counterparties to major
financial institutions. The 2012 Capped Calls, 2011 Capped Calls and 2009 Capped Calls expose us to credit risk to the extent
that the counterparties may be unable to meet the terms of the agreements. We seek to mitigate such risk by limiting our
counterparties to major financial institutions and by spreading the risk across several major financial institutions. In addition,
the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis.
(See "Shareholders' Equity – Capped Call Transactions" note.)
Geographic Information
Geographic net sales based on customer ship-to location were as follows:
For the year ended 2012 2011 2010
China $ 2,936 $ 2,983 $ 3,294
United States 1,262 1,363 1,403
Asia Pacific (excluding China, Taiwan and Malaysia) 1,241 1,518 1,090
Taiwan 1,022 744 711
Europe 827 924 777
Malaysia 546 737 817
Other 400 519 390
$ 8,234 $ 8,788 $ 8,482