Note 14 - Revenue Recognition

3 Months Ended

Feb. 26, 2022

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

14. 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 $54,491 and $51,492 as of February 26, 2022 and November 27, 2021, respectively. Approximately 60% of the customer deposits held at November 27, 2021 related to performance obligations that were satisfied during the current year-to-date period and have therefore been recognized in revenue for the three months ended February 26, 2022.

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 February 26, 2022 and November 27, 2021, our balance of prepaid commissions included in other current assets was $6,330 and $6,221, respectively.

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 months ended February 26, 2022 and February 27, 2021, excluding intercompany transactions between our segments, is a follows:

	Quarter Ended
	February 26, 2022						February 27, 2021
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	31,929	$	37,818	$	69,747	$	24,884	$	34,461	$	59,345
Bassett Leather		12,939		240		13,179		7,558		252		7,810
Bassett Custom Wood		5,980		9,407		15,387		5,341		5,458		10,799
Bassett Casegoods		2,909		8,292		11,201		3,477		11,077		14,554
Accessories, mattresses and other (1)		-		8,350		8,350		-		9,147		9,147
Consolidated net sales of furniture and accessories	$	53,757	$	64,107	$	117,864	$	41,260	$	60,395	$	101,655

(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.