Company: BRID
Filing Date: 2025-03-07
Form Type: 10-Q
Source: 0001493152-25-009592
Chunk: 22

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-03-07
Form: 10-Q
Item: Part I, Item 1
Chunk 22
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 long-lived assets may not be sufficient to support the
net book value of such assets. If undiscounted cash flows are not sufficient to support the recorded assets, we recognize an impairment
to reduce the carrying value of the applicable long-lived assets to their estimated fair value.

We
participate in “multiemployer” pension plans administered by labor unions on behalf of their employees. We pay monthly contributions
to union trust funds, a portion of which is used to fund pension benefit obligations to plan participants. The contribution amount may
change depending upon the ability of participating companies to fund these pension liabilities as well as the actual and expected returns
on pension plan assets. Should we withdraw from the union and cease participation in a union plan, federal law could impose a penalty
for additional contributions to the plan. The penalty would be recorded as an expense in the consolidated statement of operations. The
ultimate amount of the withdrawal liability is dependent upon several factors including the funded status of the plan and contributions
made by other participating companies.

On
May 22, 2024, we transitioned our pension plan assets held with Morgan Stanley Smith Barney LLC to align with our updated investment
policy statement to shift away from equities to fixed income. This derisking strategy helps establish a basis for our investment results
as well as helping to ensure that assets of the Plan are managed in accordance with the Employment Retirement Income Security Act (“ERISA”)
of 1974 and regulations pertaining thereto.

We
are subject to the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act (collectively,
the “PPACA”). Requirements of the law include the removal of the lifetime limits on active and retiree medical coverage,
expanding dependent coverage to age 26 and the elimination of pre-existing conditions that may impact other postretirement benefits costs.
The PPACA law also includes a potential excise tax on the value of benefits that exceed a pre-defined limit. Fortunately, this potential
tax has been indefinitely deferred and we do not see significant financial exposure. Finally, the PPACA includes provisions that require
employers to offer health benefits to all full-time employees (defined as 30 hours per week). The health coverage must meet minimum standards
for the actuarial value of the benefits offered and employee affordability. We believe that the current administration seems more likely
to enhance the scope and coverage associated with PPACA than to repeal or significantly change this law. The recent legislative packages
related to pandemic relief included some minor