Annual report pursuant to Section 13 and 15(d)

Concentration of Credit Risk and Significant Customers and Suppliers

v3.5.0.2
Concentration of Credit Risk and Significant Customers and Suppliers
12 Months Ended
Sep. 24, 2016
Risks and Uncertainties [Abstract]  
Concentration of Credit Risk and Significant Customers and Suppliers
Concentration of Credit Risk and Significant Customers and Suppliers
Customer Concentration – Approximately 42% of the Company’s net sales for fiscal 2016, 40% for fiscal 2015 and 41% for fiscal 2014 were derived from sales to the Company’s top five customers. The Company’s largest customer accounted for approximately 15%, 16% and 17% of the Company’s net sales in fiscal years 2016, 2015 and 2014, respectively. The Company’s second largest customer in 2016 accounted for approximately 8%, 8% and 7% of the Company’s net sales in 2016, 2015 and 2014, respectively. The Company’s third largest customer in 2016 accounted for approximately 8%, 7% and 8% of the Company’s net sales in fiscal years 2016, 2015 and 2014, respectively. The loss of, or significant adverse change in, the relationship between the Company and any of these three customers could have a material adverse effect on the Company’s business and financial results. The loss of or reduction in orders from any significant customer, losses arising from customer disputes regarding shipments, fees, merchandise condition or related matters, or the Company’s inability to collect accounts receivable from any major customer could also have a material adverse impact on the Company’s business and financial results. As of September 24, 2016 and September 26, 2015, accounts receivable from the Company’s top five customers comprised approximately 41% and 35% of the Company’s total accounts receivable, including 11% and 12% from the Company’s largest customer.
Supplier Concentration – While the Company purchases products from many different manufacturers and suppliers, approximately 9%, 11% and 10% of the Company’s cost of goods sold in fiscal years 2016, 2015 and 2014, respectively, were derived from products purchased from the Company’s five largest suppliers.