Significant Customers and Concentration of Credit Risk
|12 Months Ended|
Feb. 29, 2020
|Risks and Uncertainties [Abstract]|
|SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK||SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK
Net sales to our five largest customers represented 32.5%, 32.7%, and 32.5% of our net sales for the years ended February 29, 2020, February 28, 2019, and February 28, 2018, respectively. Net sales to our five largest customers are expected to continue to represent a significant portion of our revenues. Net sales to an individual customer which amount to 10% or more of our net sales, and the associated amounts receivable from this customer as a percentage of our accounts receivable, are as follows:
Net sales for the above customer are primarily reported within the Wine and Spirits segment. Our arrangements with certain of our customers may, generally, be terminated by either party with prior notice. The majority of our accounts receivable balance is generated from sales to independent distributors with whom we have a predetermined collection date arranged through electronic funds transfer. We perform ongoing credit evaluations of our customers’ financial position, and management is of the opinion that any risk of significant loss is reduced due to the diversity of our customers and geographic sales area.
The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef