Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 21

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 21
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 results could materially differ from these estimates. We determine the amounts to
record based on historical experience and various other assumptions that we view as reasonable under the circumstances and consider all
relevant available information. The results of this analysis form the basis for our conclusion as to the value of assets and liabilities
that are not readily available from other independent sources. Amounts estimated related to liabilities for self-insured workers’
compensation, employee healthcare and pension benefits are especially subject to inherent uncertainties and these estimated liabilities
may ultimately settle at amounts which vary from our current estimates.

Current
accounting principles require that our pension benefit obligation be measured using an internal rate of return (“IRR”) analysis
to be included in the discount rate selection process. The IRR calculation for the Retirement Plan for Employees of Bridgford Foods Corporation
is measured annually and based on the Citigroup Pension Discount Rate. The Citigroup Pension Discount Rate as of January 31, 2025, was
5.57% as compared to 5.16% as of November 1, 2024. The discount rate applied can significantly affect the value of the projected benefit
obligation as well as the net periodic benefit cost.

Our
credit risk is diversified across a broad range of customers and geographic regions. Losses due to credit risk have recently been immaterial.
The allowance for credit losses on accounts receivable is based on historical trends and current collection risk. We have significant
receivables with a couple of large, well-known customers which, although historically secure, could be subject to material risk should
these customers’ operations suddenly deteriorate. We monitor these customers closely to minimize the risk of loss.

We
record the cash surrender or contract value for life insurance policies as an adjustment of premiums paid in determining the expense
or income to be recognized under the contract for the period.

We
provide tax reserves for federal, state, local and international exposures relating to audit results, tax planning initiatives and compliance
responsibilities. The development of these reserves requires judgments about tax issues, potential outcomes, and timing, and is a subjective
estimate. Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions for income taxes have
been made for potential liabilities, if any, resulting from these reviews. Actual outcomes may differ materially from these estimates.

We
assess the recoverability of our long-lived assets on a quarterly basis or whenever adverse events or changes in circumstances or business
climate indicate that expected undiscounted future cash flows related to such