Note 14 - Revenue Recognition

6 Months Ended

May 27, 2023

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 $23,941 and $35,963 as of May 27, 2023 and November 26, 2022, respectively. Substantially all of the customer deposits held at November 26, 2022 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 27, 2023.

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 27, 2023 and November 26, 2022, our balance of prepaid commissions included in other current assets was $2,399 and $3,768, 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 27, 2023 and May 28, 2022, excluding intercompany transactions between our segments, is a follows:

	Quarter Ended
	May 27, 2023								May 28, 2022
	Wholesale		Retail		Corporate & Other (2)		Total		Wholesale		Retail		Corporate & Other		Total
Bassett Custom Upholstery	$	24,156	$	34,711	$	-	$	58,867	$	33,838	$	45,376	$	-	$	79,214
Bassett Leather		6,078		577		-		6,655		9,859		292		-		10,151
Bassett Custom Wood		4,201		9,798		-		13,999		5,660		11,237		-		16,897
Bassett Casegoods		3,009		7,771		-		10,780		3,729		9,188		-		12,917
Accessories, mattresses and other (1)		-		7,921		2,297		10,218		-		9,527		-		9,527
Consolidated net sales of furniture and accessories	$	37,444	$	60,778	$	2,297	$	100,519	$	53,086	$	75,620	$	-	$	128,706

	Six Months Ended
	May 27, 2023								May 28, 2022
	Wholesale		Retail		Corporate & Other (2)		Total		Wholesale		Retail		Corporate & Other		Total
Bassett Custom Upholstery	$	48,659	$	70,870	$	-	$	119,529	$	65,750	$	83,194	$	-	$	148,944
Bassett Leather		12,883		1,071		-		13,954		22,821		532		-		23,353
Bassett Custom Wood		9,079		19,467		-		28,546		11,643		20,644		-		32,287
Bassett Casegoods		6,608		17,821		-		24,429		6,629		17,480		-		24,109
Accessories, mattresses and other (1)		-		16,511		5,248		21,759		-		17,877		-		17,877
Consolidated net sales of furniture and accessories	$	77,229	$	125,740	$	5,248	$	208,217	$	106,843	$	139,727	$	-	$	246,570

(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.

(2) Our Corporate and other segment for the three and six months ended May 27, 2023 includes the sales of Noa Home, which was acquired on September 2, 2023 (see Note 3).