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CONCENTRATION OF CREDIT RISK AND MAJOR CUSTOMERS
3 Months Ended
Mar. 31, 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 months ended March 31, 2015 and 2014, respectively.  GE Healthcare accounted for 17% and 24% for the three months ended March 31, 2015 and 2014, respectively.  GE Transportation accounted for 9% and 5% for the three months ended March 31, 2015 and 2014, respectively.

 

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

 

Export sales represented 7% and 13% of net sales for the three months ended March 31, 2015 and 2014, respectively.