SanDisk 2008 Annual Report Download - page 91

Notes To Consolidated Financial Statements
Information regarding geographic areas for fiscal years 2008, 2007 and 2006 are as follows (in thousands):
Fiscal Years Ended
December 28,
2008
December 30,
2007
December 31,
2006
Revenues:
United States .............................................. $1,047,045 $1,227,303 $1,272,927
Asia-Pacific ............................................... 1,265,280 1,342,489 929,638
Europe, Middle East and Africa ............................... 752,848 890,340 728,355
Japan .................................................... 215,420 301,970 231,835
Other foreign countries ...................................... 70,759 134,264 94,770
Total ................................................ $3,351,352 $3,896,366 $3,257,525
As of
December 28,
2008
December 30,
2007
Long-Lived Assets:
United States ......................................................... $ 205,022 $ 227,630
Japan ............................................................... 482,980 507,794
China ............................................................... 146,666 116,936
Israel ................................................................ 36,519 41,217
Other foreign countries ................................................. 8,193 3,981
Total ............................................................ $ 879,380 $ 897,558
Revenues are attributed to countries based on the geographic location of the customers. Long-lived assets
are attributed to the geographic location in which they are located. The Company includes in long-lived assets
property and equipment, long-term investment in FlashVision, Flash Partners and Flash Alliance, and equity
investments and attributes those investments to the location of the investee’s primary operations. Amounts of
long-lived assets related to Israel and Japan for the fiscal year ended December 30, 2007 have been revised to
properly reflect certain reclassifications. The reclassifications did not have any effect on the total long-lived
assets for the fiscal year ended December 30, 2007.
Customer and Supplier Concentrations. A limited number of customers or licensees have accounted for a
substantial portion of the Company’s revenues. Revenues from the Company’s top 10 customers or licensees
accounted for approximately 48%, 46% and 52% of the Company’s revenues for the fiscal years ended
December 28, 2008, December 30, 2007 and December 31, 2006, respectively. In fiscal year 2008, Samsung
Electronics Co., Ltd (“Samsung”) accounted for 13% of the Company’s total revenues through a combination of
license and royalty and product revenues. All customers were less than 10% of the Company’s total revenues in
fiscal years 2007 and 2006.
All of the Company’s flash memory card products require silicon wafers for the memory components and
the controller components. The Company’s memory wafers or components are currently supplied almost entirely
from Flash Partners Ltd., and Flash Alliance Ltd. (collectively “Flash Ventures”). The Company’s controller
wafers are primarily manufactured by Semiconductor Manufacturing International Corporation, Taiwan
Semiconductor Manufacturing Company, Ltd., and United Microelectronics Corporation (“UMC”). The failure
of any of these sources to deliver silicon wafers could have a material adverse effect on the Company’s business,
financial condition and results of operations. Moreover, Toshiba’s employees that produce Flash Ventures’
products are covered by collective bargaining agreements and any strike or other job action by those employees
could interrupt the Company’s wafer supply from Toshiba’s Yokkaichi, Japan operations.
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