CUSTOMER AND SUPPLIER CONCENTRATION

12 Months Ended

Dec. 31, 2012

CUSTOMER AND SUPPLIER CONCENTRATION [Abstract]

CUSTOMER AND SUPPLIER CONCENTRATION

16.  CUSTOMER AND SUPPLIER CONCENTRATION

Direct sales to our top four customers, The Boeing Company, Gulfstream Aerospace Corporation, Spirit AeroSystems and Bombardier, accounted for 20.8%, 16.1%, 13.0%, and 10.1% of our total revenues in 2012, respectively. These revenues are reported by both the Aerostructures and Engineering Services segments. Accounts receivable balances related to these customers were 11.3%, 5.6%, 27.9%, and 6.4% of the accounts receivable balance at December 31, 2012, respectively.

Direct sales to our top three customers, The Boeing Company, Gulfstream Aerospace Corporation and Spirit AeroSystems, accounted for 18.3%, 16.5%, and 13.7% of our total revenues in 2011, respectively. These revenues are reported by both the Aerostructures and Engineering Services segments, except Gulfstream Aerospace Corporation, with respect to which revenues are reported by the Aerostructures segment only. Accounts receivable balances related to these customers were 15.6%, 5.4%, and 16.5% of the accounts receivable balance at December 31, 2011, respectively.

Direct sales to our top four customers, Spirit AeroSystems, Gulfstream Aerospace Corporation, The Boeing Company, and Triumph Group, accounted for 18.6%, 16.9%, 13.3%, and 10.9% of our total revenues in 2010, respectively. These revenues are reported by both the Aerostructures and Engineering Services segments, except Gulfstream Aerospace Corporation, with respect to which revenues are reported by the Aerostructures segment only.

The Company did not have any sales to a foreign country greater than 10% of its total sales in 2012, 2011 and 2010, respectively. The amounts of profitability and identifiable assets attributable to foreign sales activity are not material when compared with revenue, profitability, and identifiable assets attributed to United States domestic operations during 2012, 2011 and 2010.

The Company purchased approximately 51% of the raw materials used in production from two suppliers in 2012 and, 59% and 64% of the raw materials used in production from three suppliers in 2011 and 2010, respectively. The Company has increased its capability to integrate components into higher level aerospace assemblies and to provide point of use kitting. As a result, there was an increase in the use of third party suppliers for the purchase of strategic components. During 2012 we purchased approximately 49% of the procured parts used in assembled products from three suppliers. During 2011 and 2010 we purchased approximately 61% and 63% of the procured parts used in assembled products from four suppliers, respectively.