Crucial 2014 Annual Report Download - page 10

Download and view the complete annual report

Please find page 10 of the 2014 Crucial annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 157

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157

8
Geographic Information
Sales to customers outside the United States totaled $13.81 billion for 2014 and included sales of $6.72 billion in China,
$2.31 billion in Taiwan, $1.25 billion in Japan, $1.25 billion in Europe and $1.79 billion in the rest of the Asia Pacific region
(excluding China, Japan and Taiwan). Sales to customers outside the United States totaled $7.56 billion for 2013 and $6.97
billion for 2012. As of August 28, 2014, we had net property, plant and equipment of $3.28 billion in the United States, $3.10
billion in Singapore, $1.22 billion in Japan, $761 million in Taiwan, $242 million in China, and $75 million in other
countries. (See "Part II – 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 28, 2014, we
owned approximately 16,500 U.S. patents and 4,000 foreign patents. In addition, we have thousands of U.S. and foreign patent
applications pending. Our patents have various terms expiring through 2033.
We have a number of patent and intellectual property license agreements and have from time to time licensed or sold our
intellectual property to third parties. Some of these license agreements require us to make one-time or periodic payments while
others have resulted in us receiving payments. We may need to obtain additional patent licenses or renew existing license
agreements in the future and we may enter into additional sales or licenses of intellectual property and partnering
arrangements. We are unable to predict whether these license agreements can be obtained or renewed on acceptable terms.
Employees
As of August 28, 2014, we had approximately 30,400 employees.
Environmental Compliance
Government regulations impose various environmental controls on raw materials and discharges, emissions and solid
wastes from our manufacturing processes. In 2014, our wafer fabrication facilities continued to conform to the requirements of
ISO 14001 certification. To continue certification, we must meet 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 executive 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.
As of August 28, 2014, the following executive officers and directors were subject to the reporting requirements of Section
16(a) of the Securities Exchange Act of 1934, as amended.