Company: BRID
Filing Date: 2025-06-02
Form Type: 10-Q
Source: 0001641172-25-013252
Chunk: 24

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-06-02
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 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 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