Annual report pursuant to Section 13 and 15(d)

Significant Customers and Concentration of Credit Risk

v3.21.1
Significant Customers and Concentration of Credit Risk
 12 Months Ended
Feb. 28, 2021
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 31.8%, 32.5%, and 32.7% of our net sales for the years ended February 28, 2021, February 29, 2020, and February 28, 2019, 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:
For the Years Ended
February 28,
2021		 February 29,
2020		 February 28,
2019
Southern Glazer’s Wine and Spirits
Net sales 10.5  % 10.5  % 12.9  %
Accounts receivable 28.7  % 27.2  % 30.8  %
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.

Subsequent event
Effective April 1, 2021, approximately 70% of our branded wine and spirits portfolio volume in the U.S. is expected to be distributed through an expanded relationship with a single distributor, Southern Glazer’s Wine & Spirits.