Annual report pursuant to Section 13 and 15(d)

Significant Customers and Concentration of Credit Risk

v2.4.1.9
Significant Customers and Concentration of Credit Risk
 12 Months Ended
Feb. 28, 2015
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 33.7%, 36.6% and 57.8% of our net sales for the years ended February 28, 2015, February 28, 2014, and February 28, 2013, respectively. Net sales to our five largest customers are expected to continue to represent a significant portion of our revenues. Net sales to individual customers which amount to 10% or more of our net sales, and associated amounts receivable from these customers as a percentage of our accounts receivable, are as follows:
 
For the Years Ended
 
February 28,
2015
 
February 28,
2014
 
February 28,
2013
Southern Wine and Spirits
 
 
 
 
 
Net sales
15.4
%
 
18.4
%
 
30.0
%
Accounts receivable
24.4
%
 
26.6
%
 
34.5
%
 
 
 
 
 
 
Republic National Distributing Company
 
 
 
 
 
Net sales
7.6
%
 
9.7
%
 
15.6
%
Accounts receivable
11.5
%
 
13.9
%
 
18.7
%


Net sales for the above customers 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.