Note 14 - Revenue Recognition

6 Months Ended

May 28, 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 $46,391 and $51,492 as of May 28, 2022 and November 27, 2021, respectively. Approximately 90% 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 and six months ended May 28, 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 May 28, 2022 and November 27, 2021, our balance of prepaid commissions included in other current assets was $5,258 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 and six months ended May 28, 2022 and May 29, 2021, excluding intercompany transactions between our segments, is a follows:

	Quarter Ended
	May 28, 2022						May 29, 2021
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	33,838	$	45,376	$	79,214	$	25,960	$	35,378	$	61,338
Bassett Leather		9,859		292		10,151		10,201		228		10,429
Bassett Custom Wood		5,660		11,237		16,897		6,839		7,624		14,463
Bassett Casegoods		3,729		9,188		12,917		4,514		10,704		15,218
Accessories, mattresses and other (1)		-		9,527		9,527		-		8,549		8,549
Consolidated net sales of furniture and accessories	$	53,086	$	75,620	$	128,706	$	47,514	$	62,483	$	109,997

	Six Months Ended
	May 28, 2022						May 29, 2021
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	65,750	$	83,194	$	148,944	$	50,858	$	69,839	$	120,697
Bassett Leather		22,821		532		23,353		17,756		480		18,236
Bassett Custom Wood		11,643		20,644		32,287		12,176		13,082		25,258
Bassett Casegoods		6,629		17,480		24,109		7,984		21,781		29,765
Accessories, mattresses and other (1)		-		17,877		17,877		-		17,696		17,696
Consolidated net sales of furniture and accessories	$	106,843	$	139,727	$	246,570	$	88,774	$	122,878	$	211,652

(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.