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CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
6 Months Ended
Jun. 30, 2015
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS.  
CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

NOTE 2. CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

 

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash and accounts receivable.  With regard to cash, we maintain our excess cash balances in checking accounts at two high-credit quality financial institutions.  These accounts may at times exceed federally insured limits.  We grant credit to customers in the normal course of business and do not require collateral on our accounts receivable.

 

Our largest customer, General Electric, has two divisions that collectively account for more than 10% of net sales for the three and six months ended June 30, 2015 and 2014:

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30

 

June 30

 

 

 

2015

 

2014

 

2015

 

2014

 

GE Healthcare

 

17 

%

24 

%

17 

%

24 

%

GE Transportation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total General Electric

 

25 

%

30 

%

25 

%

29 

%

 

 

 

 

 

 

 

 

 

 

 

Combined accounts receivable from both divisions represented 18% and 19% of total accounts receivable at June 30, 2015 and December 31, 2014, respectively.

 

Export sales represented 13% and 14% of net sales for the three months ended June 30, 2015 and 2014, respectively.  Export sales represented 12% and 13% of net sales for the six months ended June 30, 2015 and 2014, respectively.