Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 746

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 9B
Chunk 746
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ivables less executory
costs including broker’s commissions, were recorded in current and non-current liabilities in the amount of $161 and $722, as of
November 1, 2024. Unearned revenue was also recorded in the amount of $167 and $693, respectively, in the consolidated balance sheet as
of November 1, 2024. This lease does not provide an implicit rate, and we estimated our incremental interest rate to be approximately
7.34%. We used our estimated incremental borrowing rate and other information available at the lease commencement date in determining
the present value of the lease payments. Legal ownership does not transfer at the end of the lease. We retain ownership of the parking
lot. There is no net book value of the underlying asset.

The following is a schedule
by years of future minimum lease payments for transportation leases and ROU assets: 

Schedule
of Future Minimum Lease Payments

    Fiscal Year
     
    Financing
Obligations

    2025
     
    $
    1,128

    2026

    1,206

    2027

    748

    2028

    253

    Later Years

    181

    Total minimum lease payments(a)
     
    $
    3,516

    Less: Amount representing executory costs

    40

    Less: Amount representing interest(b)

    -

    Present value of future minimum lease payments(c)
     
    $
    3,556

    (a) 
    Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price Index.
  
    (b)
    Amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing rate at the inception of the leases.
  
    (c)
    Reflected in Note 2, as current and noncurrent obligations under capital leases of $62 and $162, respectively, and ROU assets of $1,097 and $2,235, respectively.

We purchase large quantities
of pork, beef, and flour. These ingredients are generally available from a number of different suppliers although the availability of
these ingredients is subject to seasonal variation. We build ingredient inventories to take advantage of downward trends in seasonal prices
or anticipated supply limitations.

We purchase bulk flour under short-term fixed price
contracts at current market prices. The contracts are usually effective for and settle within three months or less at a fixed