Company: BRID
Filing Date: 2025-01-29
Form Type: 10-K
Source: 0001493152-25-004182
Chunk: 983

Company: BRIDGFORD FOODS CORP
Filing Date: 2025-01-29
Form: 10-K
Item: Item 15
Chunk 983
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 ●
    Level 2 inputs: Level 2 inputs are from other than quoted market prices included in Level 1 that are observable for the asset or liability, either directly or indirectly.

    ●
    Level 3 inputs: Level 3 inputs are unobservable and should be used to measure fair value to the extent that observable inputs are not available.

     32 

The hierarchy noted above
requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.

The Company does not have any assets or liabilities measured at fair
value on a recurring or non-recurring basis for the fiscal years ended November 1, 2024, and November 3, 2023, except for pension plan
investments (See Note 3 – Retirement and Other Benefit Plans).

Inventories

Inventories are valued at
the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value. Inventories include the cost
of raw materials, labor, and manufacturing overhead. We regularly review inventory quantities on hand and write down any excess or obsolete
inventories to net realizable value. An inventory reserve is created when potentially slow-moving or obsolete inventories are identified
in order to reflect the appropriate inventory value. Changes in economic conditions, production requirements, and lower than expected
customer demand could result in additional obsolete or slow-moving inventory that cannot be sold or must be sold at reduced prices and
could result in additional reserve provisions. The Company recorded a net realizable value reserve of $1,467 and $513 at November 1, 2024
and November 3, 2023, respectively, after determining that the market value on some meat products was less than the costs associated with
completion and sale of the product.

Property, plant, and equipment

Property, plant, and equipment
are carried at cost less accumulated depreciation. Major renewals and improvements are charged to the asset accounts while the cost of
maintenance and repairs is charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation
are removed from the respective accounts and the resulting gain or loss is credited or charged to income. Depreciation is computed on
a straight-line basis over 10 to 20 years for buildings and improvements, 5 to 10 years for machinery and equipment, and 3 to 5 years
for transportation equipment. We built a processing plant from the