Annual report pursuant to Section 13 and 15(d)

Significant Customer and Geographic Information

v3.20.4
Significant Customer and Geographic Information
 12 Months Ended
Dec. 31, 2020
Risks and Uncertainties [Abstract]  
Significant Customer and Geographic Information Concentration of Credit Risk, Significant Customers and Geographic Information
Concentration of Credit Risk
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents and accounts receivable. Collateral is generally not required for customer receivables. The Company limits its exposure to credit loss by placing its cash with high credit quality financial institutions. At times, such deposits may be in excess of insured limits. The Company has not experienced any losses on its deposits of cash and cash equivalents.
Significant Customers
The Company markets its products and services to manufacturers of a wide range of electronic devices (Note 1). The Company sells its products both directly to customers and through third-party distributors, both of which are referred to as the Company’s customers (Note 15). The Company makes periodic evaluations of the credit worthiness of its customers.
Customers comprising greater than 10% of net revenues for each of the periods presented are as follows:
Years Ended December 31,
2020 2019 2018
Percentage of total net revenue
Customer A (direct) 15  % 14  % 18  %
Customer B (direct) 13  % * *
    Balances greater than 10% of accounts receivable, based on the Company’s billings to the contract manufacturer customers, are as follows:
December 31,
2020 2019
Percentage of gross accounts receivable
Customer B (direct) 17  % *
Customer C (distributor) 13  % *
Customer D (distributor) * 10  %

Suppliers comprising greater than 10% of total inventory purchases are as follows:
Years ended December 31,
2020 2019 2018
Vendor A 34  % * *
Vendor B 20  % 14  % 19  %
Vendor C 11  % 17  % 16  %
Vendor D * 13  % 15  %
Vendor E * 15  13  %
* Represents less than 10% of the inventory purchases for the respective period.
Geographic Information
The Company's consolidated net revenues by geographic area based on ship-to location are as follows (in thousands):
Years Ended December 31,
2020 2019 2018
Amount % of total net revenue Amount % of total net revenue Amount % of total net revenue
Asia $ 393,579  82  % $ 265,122  84  % $ 312,877  81  %
United States 15,501  3  % 13,984  4  % 18,060  5  %
Rest of world 69,516  15  % 38,074  12  % 54,060  14  %
Total $ 478,596  100  % $ 317,180  100  % $ 384,997  100  %
The products shipped to individual countries representing greater than 10% of net revenue for each of the periods presented are as follows:
Years Ended December 31,
2020 2019 2018
Percentage of total net revenue
Hong Kong 42  % 46  % 43  %
China 17  % 14  % 19  %
The determination of which country a particular sale is allocated to is based on the destination of the product shipment. No other individual country accounted for more than 10% of net revenue during these periods. Although a large percentage of the Company’s products is shipped to Asia, and in particular, Hong Kong and China, the Company believes that a significant number of the systems designed by customers and incorporating the Company’s semiconductor products are subsequently sold outside Asia to Europe, Middle East, and Africa, or EMEA markets and North American markets.
Long-lived assets, which consists of property and equipment, net, leased right-of-use assets, intangible assets, net, and goodwill, by geographic area are as follows (in thousands):
As of December 31,
2020 2019
Amount % of total Amount % of total
United States $ 403,071  72  % $ 385,302  85  %
Singapore 136,967  24  % 63,556  14  %
Rest of world 31,412  5  % 5,034  1  %
Total $ 571,450  100  % $ 453,892  100  %