Crucial 2015 Annual Report Download - page 89

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87
Product Sales
For the year ended 2015 2014 2013
DRAM $ 10,339 $ 11,164 $ 4,361
Non-Volatile Memory 5,274 4,468 3,589
Other 579 726 1,123
$ 16,192 $ 16,358 $ 9,073
Non-Volatile Memory includes NAND Flash and 3D XPoint memory. Through 2015, substantially all of our Non-Volatile
Memory sales were from NAND Flash products. Sales of NOR Flash products are included in Other. Information regarding
our MCP products, which combine both NAND Flash and DRAM components, is reported within Non-Volatile Memory.
Certain Concentrations
Markets with concentrations of net sales were approximately as follows:
For the year ended 2015 2014 2013
Compute and graphics 25% 30% 20%
Mobile 25% 20% 15%
SSDs and other storage 20% 20% 25%
Server 15% 10% 10%
Automotive, industrial, medical, and other embedded 10% 10% 15%
Customer concentrations included net sales to Kingston of 11% for 2015 and 10% for 2014, net sales to Intel of 10% for
2013, and net sales to HP of 10% for 2013. Substantially all of our sales to Kingston were included in our CNBU and SBU
segments, substantially all of our sales to Intel were included in our SBU segment, and substantially all of our sales to HP were
included in our CNBU and SBU segments.
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 and production equipment 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 currency
hedges is limited and the notional amounts are relatively large. We seek to mitigate such risk by limiting our counterparties to
major financial institutions and through entering into master netting arrangements. 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.