Business and Credit Concentrations and Geographic Information

6 Months Ended

Jul. 02, 2022

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 60.6% and 60.8% of consolidated net sales for the first two quarters of 2022 and 2021, respectively. Other than Walmart, which accounted for approximately 28.9% and 28.8% of our consolidated net sales for the first two quarters of 2022 and 2021, respectively, no single customer accounted for more than 10.0% of our consolidated net sales for the first two quarters of 2022 or 2021.

Our top ten customers accounted for approximately 63.6% and 59.8% of our consolidated trade accounts receivables as of July 2, 2022 and January 1, 2022, respectively. Other than Walmart, which accounted for approximately 32.0% and 28.9% of our consolidated trade accounts receivables as of July 2, 2022 and January 1, 2022, no single customer accounted for more than 10.0% of our consolidated trade accounts receivables. As of July 2, 2022, 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 two quarters of 2022 and 2021, our sales to customers in foreign countries represented approximately 8.1% and 7.7%, respectively, of net sales. Our foreign sales are primarily to customers in Canada.