Crucial 2013 Annual Report Download - page 105

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104
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 currency
and interest rate swap 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 2031 Capped Calls, 2032 Capped Calls and 2033 Capped Calls expose
us to credit risk to the extent 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 Calls" note.)
Geographic Information
Geographic net sales based on customer ship-to location were as follows:
For the year ended 2013 2012 2011
China $ 3,783 $ 2,936 $ 2,983
United States 1,512 1,262 1,363
Asia Pacific (excluding China, Taiwan and Malaysia) 1,342 1,241 1,518
Taiwan 980 1,022 744
Europe 820 827 924
Malaysia 193 546 737
Other 443 400 519
$ 9,073 $ 8,234 $ 8,788
Net property, plant and equipment by geographic area were as follows:
As of 2013 2012 2011
Singapore $ 3,225 $ 3,270 $ 3,569
United States 3,041 3,246 3,487
Japan 615 2 1
China 350 328 179
Taiwan 307 — —
Israel 28 59 94
Italy 18 163 190
Other 42 35 35
$ 7,626 $ 7,103 $ 7,555