## Table

| Selling, General and Administrative Costs (in thousands) |  |  |  |
|---|---|---|---|
| Description | Twelve months ended October 31, 2019 | Twelve months ended October 31, 2018 | Increase/(Decrease)  |
| Advertising expense | $11,071 | $32,624 | $ (21,553) |
| Trainee expense  | 16,254 | 21,553 | (5,299) |
| Start-up expense (Tyler, Texas complex)  | 9,361 | 13,394 | (4,033) |
| Stock compensation expense  | 11,786 | 15,702 | (3,916) |
| All other SG&A expenses  | 62,653 | 64,705 | (2,052) |
| Employee Stock Ownership Plan ("ESOP") expense  | 3,000 | 2,000 | 1,000 |
| Depreciation expense - machinery and equipment  | 7,067 | 5,801 | 1,266 |
| Sanderson Farms Championship expense  | 8,817 | 6,325 | 2,492 |
| Administrative salaries | 45,108 | 42,288 | 2,820 |
| Legal expense  | 25,102 | 17,573 | 7,529 |
| Third-party sales commissions  | 10,922 | — | 10,922 |
| Total SG&A  | $211,141 | $221,965 | $ (10,824) |



## Text

Selling, general and administrative ("SG&A") costs during fiscal 2019 were $211.1 million, a decrease of $10.8 million compared to the $222.0 million of SG&A during fiscal 2018. The following table shows the components of SG&A costs for the twelve months ended October 31, 2019 and 2018.


Regarding the table above, the decrease in advertising expense is the result of the Company's decision to scale back its television and radio advertising during fiscal 2019. The change in start-up expense in any particular period relates to the stage of the start-up process in which a facility under construction is in during the period. Non-construction related expenses, such as labor, training and office-related expenses for a facility under construction are recorded as start-up expense until the facility begins operations. As a facility moves closer to actual start-up, the expenses incurred for labor, training, etc. increase. As a result, amounts classified as start-up expenses will increase period over period until the facility begins production. Once production begins, the expenses from that point forward are recorded as costs of goods sold. The decrease in stock compensation expense is the result of the number of shares earned for the performance shares granted on November 1, 2017, being lower as compared to the number of shares earned for the performance shares granted on November 1, 2016. Stock compensation is further described in "Part II, Item 8, Notes to Consolidated Financial Statements, Note 9 - Stock Compensation Plans." The increase in legal expenses is primarily attributable to our ongoing defense of the litigation described in "Part I, Item 3. Legal Proceedings" of this Form 10-K. The increase in third-party sales commissions is attributable to the Company's adoption of ASU 2014-09, Revenue from Contracts with Customers. While adoption of the standard had no effect on the Company's net income during fiscal 2019, SG&A expenses were negatively impacted during the period, and the negative impact to SG&A expenses was offset by a corresponding increase to revenue. For more information regarding the Company's adoption of ASU 2014-09 and the relation to SG&A expenses, refer to "Part II, Item 8, Notes to Consolidated Financial Statements, Note 1 - Significant Accounting Policies."