Note 15 - Revenue Recognition

9 Months Ended

Aug. 28, 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 $51,103 and $39,762 as of August 28, 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 nine months ended August 28, 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 August 28, 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.

Sales commissions are expensed as part of selling, general and administrative expenses at the time revenue is recognized because the amortization period would have been one year or less. Sales commissions at wholesale are accrued upon the shipment of goods. Sales commissions at retail are accrued at the time a sale is written (i.e. – when the customer’s order is placed) and are carried as prepaid commissions in other current assets until the goods are delivered and revenue is recognized. At August 28, 2021 and November 28, 2020, our balance of prepaid commissions included in other current assets was $6,073 and $4,279, respectively. We do not incur sales commissions in our logistical services segment.

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 nine months ended August 28, 2021 and August 29, 2020, excluding intercompany transactions between our segments, is as follows:

	Quarter Ended
	August 28, 2021						August 29, 2020
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	26,276	$	32,362	$	58,638	$	18,246	$	24,366	$	42,612
Bassett Leather		9,142		302		9,444		5,616		509		6,125
Bassett Custom Wood		5,745		7,674		13,419		4,623		4,542		9,165
Bassett Casegoods		5,131		10,394		15,525		3,712		11,428		15,140
Accessories, mattresses and other (1)		-		7,844		7,844		-		7,299		7,299
Consolidated net sales of furniture and accessories	$	46,294	$	58,576	$	104,870	$	32,197	$	48,144	$	80,341

	Nine Months Ended
	August 28, 2021						August 29, 2020
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	77,134	$	102,201	$	179,335	$	50,151	$	78,746	$	128,897
Bassett Leather		26,898		782		27,680		12,663		1,962		14,625
Bassett Custom Wood		17,921		20,756		38,677		12,877		12,710		25,587
Bassett Casegoods		13,115		32,175		45,290		9,431		31,379		40,810
Accessories, mattresses and other (1)		-		25,540		25,540		-		22,364		22,364
Consolidated net sales of furniture and accessories	$	135,068	$	181,454	$	316,522	$	85,122	$	147,161	$	232,283

(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.