Concentrations

12 Months Ended

Aug. 26, 2022

Risks and Uncertainties [Abstract]

Concentrations

Concentrations

Our concentrations of credit risk consists principally of cash and cash equivalents and accounts receivable. Our revenues and related accounts receivable reflect a concentration of activity with certain customers. We generally do not require collateral or other security to support accounts receivable. We perform periodic credit evaluations of our customers to minimize collection risk on accounts receivable and maintain allowances for potentially uncollectible accounts.

A significant portion of our net sales is concentrated with a select number of customers. Sales to our ten largest customers in 2022, 2021 and 2020 were 65%, 65% and 66%, respectively, of total net sales. As of August 26, 2022, two customers accounted for 22% and 17%, respectively, of accounts receivable.

Net sales to a number of customers each exceeded 10% of our total net sales in the past three years. Net sales to a Memory Solutions customer were 11%, 12% and 17% of total net sales in 2022, 2021 and 2020, respectively. Net sales to an IPS customer were 15% and 10% of total net sales in 2022 and 2021, respectively. Additionally, net sales to another Memory Solutions customer were 11% of total net sales in 2020. No other customers accounted for more than 10% of our total net sales in 2022, 2021 and 2020.

We rely on a limited number of suppliers for a significant portion of our raw materials. Purchases from our three largest suppliers in 2022, 2021 and 2020 were $1.5 billion, $1.1 billion and $0.9 billion, respectively. As of August 26, 2022 and August 27, 2021, accounts payable and accrued expenses included $170.1 million and $148.4 million, respectively, for amounts owed to our largest three suppliers for 2022 and 2021, respectively.