Crucial 2015 Annual Report Download - page 22

Download and view the complete annual report

Please find page 22 of the 2015 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 113

  • 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

20
We are subject to counterparty default risks.
We have numerous arrangements with financial institutions that subject us to counterparty default risks, including cash
deposits, investments, capped-call contracts on our stock, and derivative instruments. As a result, we are subject to the risk that
the counterparty to one or more of these arrangements will default on its performance obligations. A counterparty may not
comply with their contractual commitments which could then lead to their defaulting on their obligations with little or no notice
to us, which could limit our ability to take action to mitigate our exposure. Additionally, our ability to mitigate our exposures
may be constrained by the terms of our contractual arrangements or because market conditions prevent us from taking effective
action. If one of our counterparties becomes insolvent or files for bankruptcy, our ability to recover any losses suffered as a
result of that counterparty's default may be limited by the liquidity of the counterparty or the applicable laws governing the
bankruptcy proceeding. In the event of such default, we could incur significant losses, which could adversely impact our
business, results of operations, or financial condition.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
ITEM 2. PROPERTIES
Our corporate headquarters are located in Boise, Idaho. The following is a summary of our principal facilities as of
September 3, 2015:
Location Principal Operations
Boise, Idaho R&D, including wafer fabrication; reticle manufacturing; test and module assembly
Lehi, Utah Wafer fabrication
Manassas, Virginia Wafer fabrication
Singapore Three wafer fabrication facilities and a test, assembly and module assembly facility
Xi’an, China Module assembly and test
Muar, Malaysia Assembly and test
Taichung City, Taiwan Wafer fabrication
Hiroshima, Japan Wafer fabrication and R&D
Akita, Japan Module assembly and test
Substantially all of the capacity of the facilities listed above is fully utilized. Our Inotera joint venture has a 300mm wafer
fabrication facility in Kueishan, Taiwan. Under our supply agreement with Inotera, we purchase all of the output of Inotera.
We also own and lease a number of other facilities in locations throughout the world that are used for design, R&D, and sales
and marketing activities.
Our facility in Lehi is owned and operated by our IMFT joint venture with Intel. (See "Part II – Item 8. Financial
Statements and Supplementary Data – Notes to Consolidated Financial Statements – Equity – Noncontrolling Interests in
Subsidiaries – IMFT.")
In December 2014, we announced plans to add approximately 255,000 square feet of clean room space to our fabrication
facility in Singapore to implement 3D NAND Flash production. Construction of the additional space began in 2015 with initial
manufacturing output likely in 2017.
We believe that our existing facilities are suitable and adequate for our present purposes. We do not identify or allocate
assets by operating segment. (See "Part II – Item 8. Financial Statements and Supplementary Data – Notes to Consolidated
Financial Statements – Geographic Information.")