Note 15 - Revenue Recognition

9 Months Ended

Aug. 27, 2022

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 $40,311 and $51,492 as of August 27, 2022 and November 27, 2021, respectively. Substantially all 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 nine months ended August 27, 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 August 27, 2022 and November 27, 2021, our balance of prepaid commissions included in other current assets was $4,357 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 nine months ended August 27, 2022 and August 28, 2021, excluding intercompany transactions between our segments, is a follows:

	Quarter Ended
	August 27, 2022						August 28, 2021
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	30,885	$	39,054	$	69,939	$	26,276	$	32,362	$	58,638
Bassett Leather		6,290		867		7,157		9,142		302		9,444
Bassett Custom Wood		5,564		11,357		16,921		5,745		7,674		13,419
Bassett Casegoods		4,387		10,404		14,791		5,131		10,394		15,525
Accessories, mattresses and other (1)		-		9,204		9,204		-		7,844		7,844
Consolidated net sales of furniture and accessories	$	47,126	$	70,886	$	118,012	$	46,294	$	58,576	$	104,870

	Nine Months Ended
	August 27, 2022						August 28, 2021
	Wholesale		Retail		Total		Wholesale		Retail		Total
Bassett Custom Upholstery	$	96,636	$	122,248	$	218,884	$	77,134	$	102,201	$	179,335
Bassett Leather		29,111		1,399		30,510		26,898		782		27,680
Bassett Custom Wood		17,207		32,001		49,208		17,921		20,756		38,677
Bassett Casegoods		11,015		27,884		38,899		13,115		32,175		45,290
Accessories, mattresses and other (1)		-		27,081		27,081		-		25,540		25,540
Consolidated net sales of furniture and accessories	$	153,969	$	210,613	$	364,582	$	135,068	$	181,454	$	316,522

(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.