The following excerpt is from Whirlpool Corporation's 2008 10-K report filed with the SEC and is a required disclosure:
The company is a major supplier to Sears of laundry, refrigerator, dishwasher, and trash compactor home appliances. Sears markets some of the products we supply to them under its Kenmore brand name. Sears is also a major outlet for out Whirlpool, KitchenAid, Jenn-Air, and Amana brand products. In 2008 approximately 11% of our consolidated sales were attributable to sales to Sears.
Required:
1. Why does the SEC require companies like Whirlpool to alert financial statement readers to the existence of major customers?
2. How might this information be of use to a financial analyst?
3. Why might Sears want to monitor the financial performance and health of Whirlpool? What specific information about Whirlpool would be of most interest to Sears?