CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS

9 Months Ended

Sep. 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 nine months ended September 30, 2015 and 2014:

	Three Months Ended				Nine Months Ended
	September 30				September 30
	2015		2014		2015		2014
GE Healthcare	18	%	23	%	18	%	24	%
GE Transportation	11		7		9		5
Total General Electric	29	%	30	%	27	%	29	%

Combined accounts receivable from both divisions represented 22% and 20% of total accounts receivable at September 30, 2015 and December 31, 2014, respectively.

Export sales represented 12% of net sales for the three and nine months ended September 30, 2015.  Export sales represented 13% of net sales for the three and nine months ended September 30, 2014