Annual report pursuant to Section 13 and 15(d)

Significant Customers and Concentration of Credit Risk

v3.22.1
Significant Customers and Concentration of Credit Risk
 12 Months Ended
Feb. 28, 2022
Risks and Uncertainties [Abstract]  
SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK SIGNIFICANT CUSTOMERS AND CONCENTRATION OF CREDIT RISK
Net sales to our 10 largest customers represented approximately half of our net sales for the years ended February 28, 2022, February 28, 2021, and February 29, 2020, and 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,
2022		 February 28,
2021		 February 29,
2020
Reyes Beer Division entities
Net sales 21.0  % 18.6  % 16.1  %
Accounts receivable 11.1  % 12.7  % 10.6  %
Southern Glazer’s Wine and Spirits
Net sales 14.4  % 10.5  % 10.5  %
Accounts receivable 35.2  % 28.7  % 27.2  %

Net sales for the above customers are primarily reported within the Beer and Wine and Spirits segments, respectively. 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.