Note 15 - Revenue Recognition

6 Months Ended

May 29, 2021

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

15. Revenue Recognition

We recognize revenue when we transfer promised goods or services to our customers in an amount that reflects the consideration we expect to receive in exchange for those goods or services. For our wholesale and retail segments, revenue is recognized when the risks and rewards of ownership and title to the product have transferred to the buyer. At wholesale, transfer occurs and revenue is recognized upon the shipment of goods to independent dealers and licensee-owned BHF stores. At retail, transfer occurs and revenue is recognized upon delivery of goods to the customer. All wholesale and retail revenues are recorded net of estimated returns and allowances based on historical patterns. We typically collect a significant portion of the purchase price from our retail customers as a deposit upon order, with the balance typically collected upon delivery. These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $47,911 and $39,762 as of May 29, 2021 and November 28, 2020, respectively. Substantially all of the customer deposits held at November 28, 2020 related to performance obligations that were satisfied during the current year-to-date period and have therefore been recognized in revenue for the six months ended May 29, 2021.

For our logistical services segment, line-haul freight revenue is recognized as services are performed and are billed to the customer upon the completion of delivery to the destination. Because the customer receives the benefits of these services as the freight is in transit from point of origin to destination, we recognize revenue using a percentage of completion method based on our estimate of the amount of time freight has been in transit as of the reporting date compared with our estimate of the total required time for the deliveries. The balances of assets recognized for shipping revenues earned but not billed were $962 and $783 as of May 29, 2021 and November 28, 2020, respectively. Warehousing services revenue is based upon warehouse space occupied by a customer’s goods and inventory movements in and out of a warehouse and is recognized as such services are provided and billed to the customer concurrently in the same period.

We exclude from revenue all amounts collected from customers for sales tax. We do not disclose amounts allocated to remaining unsatisfied performance obligations as they are expected to be satisfied within one year or less.

Disaggregated revenue information for sales of furniture and accessories by product category for the three and six months ended May 29, 2021 and May 30, 2020, excluding intercompany transactions between our segments, is a follows:

	Quarter Ended
	May 29, 2021						May 30, 2020
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	25,960	$	35,378	$	61,338	$	11,728	$	17,620	$	29,348
Bassett Leather		10,201		228		10,429		2,881		681		3,562
Bassett Custom Wood		6,839		7,624		14,463		3,053		3,054		6,107
Bassett Casegoods		4,514		10,704		15,218		2,167		6,809		8,976
Accessories, mattresses and other (1)		-		8,549		8,549		-		5,007		5,007
Consolidated net sales of furniture and accessories	$	47,514	$	62,483	$	109,997	$	19,829	$	33,171	$	53,000

	Six Months Ended
	May 29, 2021						May 30, 2020
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	50,858	$	69,839	$	120,697	$	31,905	$	54,380	$	86,285
Bassett Leather		17,756		480		18,236		7,047		1,453		8,500
Bassett Custom Wood		12,176		13,082		25,258		8,254		8,168		16,422
Bassett Casegoods		7,984		21,781		29,765		5,719		19,951		25,670
Accessories, mattresses and other (1)		-		17,696		17,696		-		15,065		15,065
Consolidated net sales of furniture and accessories	$	88,774	$	122,878	$	211,652	$	52,925	$	99,017	$	151,942

(1) Includes the sale of goods other than Bassett-branded products, such as accessories and bedding, and also includes the sale of furniture protection plans.