Note 13 - Revenue Recognition

9 Months Ended

Aug. 31, 2024

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

13. 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 at the time delivery is scheduled. These customer deposits are carried on our balance sheet as a current liability until delivery is fulfilled and amounted to $23,700 and $22,788 as of August 31, 2024 and November 25, 2023, respectively. Substantially all of the customer deposits held as of November 25, 2023 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 31, 2024.

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 31, 2024 and November 25, 2023, our balance of prepaid commissions included in other current assets was $2,559 and $2,245, 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 31, 2024 and August 26, 2023, excluding intercompany transactions between our segments, is a follows:

	Quarter Ended
	August 31, 2024								August 26, 2023
	Wholesale		Retail		Corporate & Other (2)		Total		Wholesale		Retail		Corporate & Other		Total
Bassett Custom Upholstery	$	17,854	$	25,631	$	-	$	43,485	$	19,985	$	30,177	$	-	$	50,162
Bassett Leather		3,730		1,229		-		4,959		6,743		337		-		7,080
Bassett Custom Wood		2,748		7,617		-		10,365		3,564		7,697		-		11,261
Bassett Casegoods		3,043		5,909		-		8,952		2,865		7,027		-		9,892
Accessories, mattresses and other (1)		-		6,870		988		7,858		-		7,026		1,796		8,822
Consolidated net sales of furniture and accessories	$	27,375	$	47,256	$	988	$	75,619	$	33,157	$	52,264	$	1,796	$	87,217

	Nine Months Ended
	August 31, 2024								August 26, 2023
	Wholesale		Retail		Corporate & Other (2)		Total		Wholesale		Retail		Corporate & Other		Total
Bassett Custom Upholstery	$	60,046	$	82,690	$	-	$	142,736	$	68,641	$	101,047	$	-	$	169,688
Bassett Leather		11,254		3,173		-		14,427		19,630		1,408		-		21,038
Bassett Custom Wood		9,933		24,336		-		34,269		12,642		27,164		-		39,806
Bassett Casegoods		8,938		19,684		-		28,622		9,473		24,848		-		34,321
Accessories, mattresses and other (1)		-		21,595		3,934		25,529		-		23,537		7,044		30,581
Consolidated net sales of furniture and accessories	$	90,171	$	151,478	$	3,934	$	245,583	$	110,386	$	178,004	$	7,044	$	295,434

(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) Corporate and other for the three and nine months ended August 31, 2024 and August 26, 2023 includes the sales of Noa Home.