Significant Market Segments And Customers

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Significant Market Segments And Customers

Significant Market Segments and Customers

Rockwell operates in one market segment, the hemodialysis market, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics, including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process.

One customer, DaVita, Inc. ("DaVita"), accounted for 47% of Rockwell's sales in 2021 and 50% of its sales in 2020.  Rockwell's accounts receivable from this customer were $1.0 million and $1.1 million as of December 31, 2021 and 2020, respectively. 

In October 2014, Rockwell entered into the Baxter Distribution Agreement, which was amended in June 2017 and March 2020, pursuant to which Baxter received exclusive distribution rights for the Company's concentrate products in the United States, a commitment by Rockwell to maintain a specified manufacturing capacity for Baxter, a cap upon the net amount of reimbursable transportation expenses and modified extension terms. Rockwell's domestic customer contracts for the supply of dialysis concentrate products that permitted assignment to Baxter without consent have been assigned to Baxter.  As a result, for 2021 and 2020, Rockwell's direct sales to Baxter aggregated approximately 26% and 25% of sales, respectively, and the Company had a receivable from Baxter of $3.5 million and $1.6 million as of December 31, 2021 and 2020, respectively.

DaVita and Baxter and the accounts administered by Baxter are important to Rockwell's business, financial condition and results of operations.  The loss of any significant accounts could have a material adverse effect on the Company's business, financial condition and results of operations.  No other domestic customers accounted for more than 10% its our sales in any of the last two years.

The majority of Rockwell's international sales in each of the last two years were sales to domestic distributors that were resold to end users outside the United States.  Rockwell's sales to foreign customers and distributors accounted for approximately 10% and 9% of its total sales in 2021 and 2020, respectively. One international customer, Nipro Medical Corporation, accounted for 8% and 7% of its sales for 2021 and 2020, respectively.