Business and Credit Concentration

6 Months Ended

Mar. 31, 2015

Business and Credit Concentration

Business and Credit Concentration

10. Business and Credit Concentration

Financial Instruments

        Financial instruments that potentially subject us to credit risk consist primarily of cash and cash equivalents (the amounts of which may, at times, exceed Federal Deposit Insurance Corporation limits on insurable amounts), investments and trade accounts receivable. We mitigate our risk by investing in or through major financial institutions.

Customers

        We perform on-going credit evaluations of our customers and adjust credit limits based upon payment history and the customers' current creditworthiness, as determined by review of their current credit information. Customers' account activity is continuously monitored. As a result of this review process, we record bad debt expense, which is based upon historical experience as well as specific customer collection issues that have been identified, to adjust the carrying amount of the related receivable to its estimated realizable value. While such bad debt expenses historically have been within expectations and the allowances established, if the financial condition of one or more of our customers were to deteriorate, additional bad debt provisions may be required.

        The following customers accounted for the following percentages of net sales for the three and six months ended March 31, 2015 and 2014, respectively:

	Wholesale Segment Net Sales						Total Consolidated Net Sales
	Three Months Ended March 31,						Three Months Ended March 31,
	2015			2014			2015			2014
Customer A		19	%		21	%		11	%		12	%
Customer B		10	%		8	%		6	%		5	%

	Wholesale Segment Net Sales						Total Consolidated Net Sales
	Six Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Customer A		18	%		20	%		10	%		12	%
Customer B		14	%		13	%		8	%		8	%
Customer C		10	%		9	%		6	%		5	%

        The following customers accounted for the following percentages of the Wholesale segment's gross accounts receivable:

	March 31, 2015			September 30, 2014
Customer A		12	%		13	%
Customer B		12	%		11	%
Customer C		10	%		9	%

        The loss of any of these customers, or any one of our other major customers, would have a material adverse effect on our consolidated financial statements if we were unable to replace that customer.