Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 70

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 8
Chunk 70
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 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 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 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