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Segment Information and Concentration of Risk
12 Months Ended
Dec. 31, 2018
Risks and Uncertainties [Abstract]  
Segment Information and Concentration of Risk
Segment Information and Concentration of Risk
Segments and the Chief Operating Decision Maker
The Company’s chief operating decision makers ("CODMs"), the Chief Executive Officer and the Chief Financial Officer, review financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. The CODMs allocate resources and make operational decisions based on direct involvement with the Company’s operations and product development efforts. The Company is managed under a functionally-based organizational structure with the head of each function reporting to the Chief Executive Officer. The CODMs assess performance, including incentive compensation, based upon consolidated operations performance and financial results on a consolidated basis. As such, the Company has a single reporting segment and operating unit structure.
Concentration of Geographic Risk
The majority of the Company’s revenue and long-lived assets are attributable to operations in the United States for all periods presented. In the year ended December 31, 2018, total revenue in the Republic of Korea was 12% of the Company's total revenue.
Concentrations of Credit Risk
Financial instruments that potentially subject the Company to a concentration of credit risk consist primarily of cash and cash equivalents, short-term investments, accounts receivables, customer financing lease receivables and counterparties to derivative instruments.
Management believes that the financial institutions that hold the Company’s cash and cash equivalents are financially credit worthy and, accordingly, believes minimal credit risk exists with respect to the funds placed. Generally, such deposits may be redeemed upon demand and, therefore, bear minimal interest rate risk. Short-term investments consist of U.S. Treasury Bills.
The Company conducts periodic evaluations of the creditworthiness of its customers and the collectability of its accounts receivable and financing leases receivable and provides for potential credit losses as necessary in the consolidated financial statements. To date, the Company has neither provided an allowance for uncollectible accounts nor experienced any credit loss.
Management evaluates the credit risk of the counterparties of its derivative instruments prior to contract execution. Management believes that such counterparties are financially credit worthy and, accordingly, believes minimal credit risk exists with respect to its derivative contracts.
Concentrations of Customer Risk
The Company's Energy Servers are sold at a significant purchase price with few numerical sales in any given quarter. Consequently in any particular period, a substantial proportion of total revenue is concentrated in a relatively small number of customers. In subsequent periods, the same is true for a different set of customers. Therefore, although revenue is highly concentrated in a few customers in a single quarterly period, such is not the case when examining revenue over longer terms.
In the years ended December 31, 2018, total revenue from The Southern Company and AT&T represented 43% and 11%, respectively, of the Company's total revenue. The Southern Company wholly owns a Third-Party PPA which purchases Bloom Energy Servers, however, such purchases and resulting revenue is made on behalf of various customers of this Third-Party PPA.
In the years ended December 31, 2017, total revenue from The Southern Company and Delmarva represented 43% and 10% of total revenue, respectively. In the years ended December 31, 2016, total revenue from Delmarva and Intel Corporation represented 18% and 12%, respectively, of the Company's total revenue.
Concentrations of Supply Risk
The Company’s products are manufactured using a rare earth mineral. The suppliers for this raw material are primarily located in Asia. A significant disruption in the operations of one or more of these suppliers could impact the production of the Company’s products which could have a material adverse effect on its business, financial condition and results of operations. In addition, a small portion of the Company’s components are single sourced and any disruption from these vendors could impact the Company’s production and could have a material adverse effect on it business and results of operation.
Cybersecurity Risk
All of the Company's installed Energy Servers are connected to and controlled and monitored by the Company's centralized remote monitoring service. Additionally, the Company relies on internal computer networks for many of the systems used to operate the business generally. The Company may be vulnerable to breaches, unauthorized access, misuse, computer viruses or other malicious code and cyber-attacks. The Company takes protective measures and endeavors to modify these internal systems as circumstances warrant to prevent unauthorized intrusions or disruptions.