Business and Credit Concentrations and Geographic Information

3 Months Ended

Mar. 28, 2020

Business and Credit Concentrations and Geographic Information

Business and Credit Concentrations and Geographic Information

(14) Business and Credit Concentrations and Geographic Information

Our exposure to credit loss in the event of non-payment of accounts receivable by customers is estimated in the amount of the allowance for doubtful accounts. We perform ongoing credit evaluations of the financial condition of our customers. Our top ten customers accounted for approximately 59.5% and 59.6% of consolidated net sales for the first quarter of 2020 and 2019, respectively. Other than Walmart, which accounted for approximately 25.6% and 24.8% of our consolidated net sales for the first quarter of 2020 and 2019, respectively, no single customer accounted for more than 10.0% of our consolidated net sales for the first quarter of 2020 or 2019.

Our top ten customers accounted for approximately 62.7% and 62.3% of our consolidated trade accounts receivables as of March 28, 2020 and December 28, 2019, respectively. Walmart accounted for approximately 26.3% and 29.1% of our consolidated trade accounts receivables as of March 28, 2020 and December 28, 2019, respectively. Kroger accounted for approximately 10.3% and 7.8% of our consolidated trade accounts receivables as of March 28, 2020 and December 28, 2019, respectively. Other than Walmart and Kroger, no single customer accounted for more than 10.0% of our consolidated trade accounts receivables. As of March 28, 2020, we do not believe we have any significant concentration of credit risk with respect to our consolidated trade accounts receivables with any single customer whose failure or nonperformance would materially affect our results other than as described above with respect to Walmart.

During the first quarter of 2020 and 2019, our sales to customers in foreign countries represented approximately 9.1% and 7.7%, respectively, of net sales. Our foreign sales are primarily to customers in Canada.