Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 23

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 23
---

position, results of operations and cash flows. The reader is therefore cautioned not to place undue reliance on forward-looking statements
contained herein and to consider other risks detailed more fully in our Annual Report on Form 10-K for the fiscal year ended November
1, 2024 (the “Annual Report”) as well as our other filings with the SEC with the understanding that our future results may
be materially different from what we currently expect. The forward-looking statements we make speak only as of the date on which they
are made. We expressly disclaim any intent or obligation to update any forward-looking statements after the date hereof to conform such
statements to actual results or to changes in our opinions or expectations. If we do update or correct any forward-looking statements,
readers should not conclude that we will make additional updates or corrections.

 14 of 27 

Critical
Accounting Policies and Management Estimates

The
preparation of our Condensed Consolidated Financial Statements in conformity with generally accepted accounting principles in the United
States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during
the respective reporting periods. Some of the estimates needed to be made by management include the allowance for doubtful accounts,
promotional and returns allowances, inventory reserves, the estimated useful lives of property and equipment, and the valuation allowance
for the Company’s deferred tax assets. Actual 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 April 30, 2025, was
5.62% as compared to 5.16%