INDUSTRY SEGMENT, GEOGRAPHIC, CUSTOMER AND SUPPLIER INFORMATION

12 Months Ended

Feb. 29, 2012

INDUSTRY SEGMENT, GEOGRAPHIC, CUSTOMER AND SUPPLIER INFORMATION [Abstract]

INDUSTRY SEGMENT, GEOGRAPHIC, CUSTOMER AND SUPPLIER INFORMATION

16. INDUSTRY SEGMENT, GEOGRAPHIC, CUSTOMER AND SUPPLIER INFORMATION

Industry Segment

Given the Company's focus on developing products that can address multiple end markets, market demand for products that contain more than one element of SMSC's technology solutions and the impact that these trends have had on the management of the Company's business and internal reporting, the Company has concluded that it operates and reports as a single business segment - the design, development, and marketing of semiconductor integrated circuits.

Sales and Revenues by Geographic Region

The Company's sales by country are based upon the geographic location of the customers who purchase the Company's products. For product sales to electronic component distributors, their countries may be different from those of the end customers. The information below summarizes sales and revenues to unaffiliated customers by country (in thousands):

For the Fiscal Years Ended February 29 and 28,	2012		2011		2010
China	$	85,787	$	77,247	$	67,287
Taiwan		74,988		88,343		75,548
Japan		68,319		73,588		47,055
United States		30,474		33,853		21,665
Germany		27,616		28,197		20,852
Hong Kong		27,289		22,569		16,423
Other		97,631		85,682		58,948
	$	412,104	$	409,479	$	307,778

Certain prior year amounts reported above have been reclassified to conform to the current year presentation.

Significant Customers

From period to period, several key customers account for a significant portion of the Company's sales and revenues. Sales and revenues from significant customers, stated as percentages of total sales and revenues, are summarized as follows:

For Fiscal Years Ended February 29 and 28,	2012			2011			2010
Avnet Asia		12	%		16	%		12	%

The Company's contracting sales counterparty may vary as a result of the manner in which it goes to market, the structure of the semiconductor market, industry consolidation and customer preferences. In many cases the Company's products will be designed into an end product by an OEM customer who will then contract to have the product manufactured by an ODM. In such cases, the Company will sell its products directly to the selected ODM, who becomes the Company's contracting counterparty for the sale. In other cases, the OEM or ODM may design the product and be the contracting counterparty. In some cases the Company or the ODM may wish to have a distributor as the direct sales counterparty. As a result of changing relationships and shifting market practices and preferences, the mix of customers can change from period to period and over time.

Long-Lived Assets by Geographic Region

The Company's net property, plant and equipment by geographic area consists of the following (in thousands):

As of February 29 and 28,	2012		2011
United States and Canada	$	49,206	$	58,601
Luxembourg		7,398		-
Taiwan		2,922		3,393
Other Asia Pacific		3,379		3,235
Germany and Other Europe		1,518		2,153
	$	64,423	$	67,382

Significant Suppliers

The Company does not operate a wafer fabrication facility. Three independent semiconductor wafer foundries in Asia currently supply substantially all of the Company's devices in current production. In addition, substantially all of the Company's products are assembled and tested by several independent subcontractors in Asia.