Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 857

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 11
Chunk 857
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 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 price and
quantity. We monitor and manage our ingredient costs to help negate volatile daily swings in market prices when possible. We do not participate
in the commodity futures market or hedging to limit commodity exposure.

     43 

The Company is involved in various claims and
legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters is not
expected to have a material adverse effect on the Company’s consolidated financial position or results of operations.

NOTE 7 - Segment Information:

We have two reportable operating
segments, Frozen Food Products (the processing and distribution of frozen products) and Snack Food Products (the processing and distribution
of meat and other convenience foods).

We evaluate each segment’s
performance based on revenues and operating income. Selling, general and administrative expenses include corporate accounting, information
systems, human resources and marketing management at the corporate level. These activities are allocated to each operating segment based
on revenues and/or actual usage.

The following segment information
is for the fiscal years ended November 1, 2024 (52 weeks) and November 3, 2023 (53 weeks):

Schedule of Segment Reporting Information, by Segment 

    2024

    Frozen Food 
    Products 

    Snack Food 
    Products 

    Other

    Totals

    Segment Information
  
    2024

    Frozen Food 
    Products