Hexcel (HXL)

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable.  Three customers and their related subcontractors accounted for approximately half of our annual net sales for 2006 through 2008.  Refer to Note 18 for further information on significant customers.  We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables.  We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information.  As of December 31, 2008 and 2007, the allowance for doubtful accounts was $2.1 million and $2.2 million, respectively.  Bad debt expense was $0.1 million, $1.3 million, and $0.4 million in 2008, 2007, and 2006, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable.  Three customers and their related subcontractors accounted for approximately half of our annual net sales for 2006 through 2008.  Refer to Note 18 for further information on significant customers.  We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables.  We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information.  As of December 31, 2008 and 2007, the allowance for doubtful accounts was $2.1 million and $2.2 million, respectively.  Bad debt expense was $0.1 million, $1.3 million, and $0.4 million in 2008, 2007, and 2006, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable.  Three customers and their related subcontractors accounted for approximately half of our annual net sales for 2006 through 2008.  Refer to Note 18 for further information on significant customers.  We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables.  We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information.  As of December 31, 2008 and 2007, the allowance for doubtful accounts was $2.1 million and $2.2 million, respectively.  Bad debt expense was $0.1 million, $1.3 million, and $0.4 million in 2008, 2007, and 2006, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject
us to significant concentrations of credit risk consist primarily of trade accounts
receivable.  Three customers and their
related subcontractors accounted for approximately half of our annual net sales
for 2006 through 2008.  Refer to Note 18
for further information on significant customers.  We perform ongoing credit evaluations of our
customers’ financial condition but generally do not require collateral or other
security to support customer receivables. 
We establish an allowance for doubtful accounts based on factors
surrounding the credit risk of specific customers, historical trends and other
financial information.  As of December 31,
2008 and 2007, the allowance for doubtful accounts was $2.1 million and $2.2
million, respectively.  Bad debt expense
was $0.1 million, $1.3 million, and $0.4 million in 2008, 2007, and 2006, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable.  Two customers and their related subcontractors accounted for approximately half our annual net sales for 2005 through 2007.  Refer to Note 19 for further information on significant customers.  We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables.  We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information.  As of December 31, 2007 and 2006, the allowance for doubtful accounts was $2.2 million and $1.6 million, respectively.  Bad debt expense was $1.3 million, $0.4 million, and $0.3 million in 2007, 2006, and 2005, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject us to significant
concentrations of credit risk consist primarily of trade accounts
receivable.  Two customers and their
related subcontractors accounted for approximately half our annual net sales
for 2005 through 2007.  Refer to Note 19
for further information on significant customers.  We perform ongoing credit evaluations of our
customers’ financial condition but generally do not require collateral or other
security to support customer receivables. 
We establish an allowance for doubtful accounts based on factors
surrounding the credit risk of specific customers, historical trends and other
financial information.  As of December 31,
2007 and 2006, the allowance for doubtful accounts was $2.2 million and $1.6
million, respectively.  Bad debt expense
was $1.3 million, $0.4 million, and $0.3 million in 2007, 2006, and 2005,
respectively.

Concentration of Credit Risk

Financial instruments that potentially subject us to significant concentrations of credit risk consist primarily of trade accounts receivable. Our sales to two customers and their related subcontractors accounted for approximately 43.9%, 41.6%, and 40.8% of our 2006, 2005 and 2004 net sales, respectively. We perform ongoing credit evaluations of our customers’ financial condition but generally do not require collateral or other security to support customer receivables. We establish an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information. As of December 31, 2006 and 2005, the allowance for doubtful accounts was $1.8 million and $6.4 million, respectively. Bad debt expense was $0.1 million, $0.9 million, and $3.0 million in 2006, 2005, and 2004, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject Hexcel to significant concentrations of credit risk consist primarily of trade accounts receivable. The Company’s sales to two customers and their related subcontractors accounted for approximately 40.9%, 40.0%, and 42.3% of the Company’s 2005, 2004 and 2003 net sales, respectively. The Company performs ongoing credit evaluations of its customers’ financial condition but generally does not require collateral or other security to support customer receivables. The Company establishes an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information. As of December 31, 2005 and 2004, the allowance for doubtful accounts was $6.4 million and $6.5 million, respectively. Bad debt expense was $0.9 million, $3.0 million, and $0.6 million in 2005, 2004, and 2003, respectively.

Concentration of Credit Risk

Financial instruments that potentially subject Hexcel to significant concentrations of credit risk consist primarily of trade accounts receivable.  The Company’s sales to two customers and their related subcontractors accounted for approximately 40.0%, 42.3%, and 40.2% of the Company’s 2004, 2003 and 2002 net sales, respectively.  The Company performs ongoing credit evaluations of its customers’ financial condition but generally does not require collateral or other security to support customer receivables.  The Company establishes an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information.  As of December 31, 2004 and 2003, the allowance for doubtful accounts was $6.5 million and $4.2 million, respectively.  Bad debt expense was $3.0 million in 2004 and $0.6 million in 2003, and a net credit of $(0.9) million in 2002.

Concentration of Credit Risk

Financial instruments that potentially subject Hexcel to significant concentrations of credit risk consist primarily of trade accounts receivable.  The Company’s sales to two customers and their related subcontractors accounted for approximately 40.0%, 42.3%, and 40.2% of the Company’s 2004, 2003 and 2002 net sales, respectively.  The Company performs ongoing credit evaluations of its customers’ financial condition but generally does not require collateral or other security to support customer receivables.  The Company establishes an allowance for doubtful accounts based on factors surrounding the credit risk of specific customers, historical trends and other financial information.  As of December 31, 2004 and 2003, the allowance for doubtful accounts was $6.5 million and $4.2 million, respectively.  Bad debt expense was $3.0 million in 2004 and $0.6 million in 2003, and a net credit of $(0.9) million in 2002.