Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 480

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 6
Chunk 480
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 distribution of frozen foods products, and the processing and distribution of snack
food products. See Note 7 Segment Information for further information.

Fiscal year

We maintain our accounting
records on a 52-53-week fiscal basis ending on the Friday closest to October 31. As part of the regular accounting cycle, fiscal year
2024 included 52 weeks and fiscal year 2023 included 53 weeks.

Revenues

The Company recognizes revenue
for the sale of the product at the point in time when our performance obligation has been satisfied and control of the product has transferred
to our customer, which generally occurs upon shipment, pickup or delivery to a customer based on terms of the sale. Contracts with customers
are typically short-term in nature with completion of a single performance obligation. Product is sold to foodservice, retail, institutional
and other distribution channels. Products are delivered to customers primarily through our own long-haul fleet, common carrier or through
a Company owned direct store delivery system. These delivery costs, $7,460 and $7,190 for fiscal years 2024 and 2023, respectively, are
included in selling, general and administrative expenses in the accompanying consolidated financial statements. Shipping and handling
that occurs after the customer has obtained control of the product is recorded as a fulfillment cost rather than an additional assured
service. Costs paid to third party brokers to obtain contracts are recognized as part of selling expenses. Other sundry items in context
of the contract are also recognized as selling expense. Any taxes collected on behalf of the government are excluded from net revenue.

We record revenue at the transaction
price which is measured as the amount of consideration we anticipate to receive in exchange for providing product to our customers. Revenue
is recognized as the net amount estimated to be received after deducting estimated or known amounts including variable consideration for
discounts, trade allowances, consumer incentives, coupons, volume-based incentives, cooperative advertising, product returns and other
such programs. Promotional allowances, including customer incentive and trade promotion activities, are recorded as a reduction to sales
based on amounts estimated being due to customers, based primarily on historical utilization and redemption rates. Estimates are reviewed
regularly until incentives or product returns are realized and the result of any such adjustments are known. Promotional allowances deducted
from sales for fiscal years 2024 and 2023 were $19,746 and $17,256, respectively.

Advertising expenses

Advertising and other promotional
expenses are recorded as selling, general and administrative expenses. Advertising