v3.23.1
Note 14 - Revenue Recognition
 3 Months Ended
Feb. 25, 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 $31,040 and $35,963 as of February 25, 2023 and November 26, 2022, respectively. Approximately 81% 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 three months ended February 25, 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 February 25, 2023 and November 26, 2022, our balance of prepaid commissions included in other current assets was $3,145 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 months ended February 25, 2023 and February 26, 2022, excluding intercompany transactions between our segments, is a follows:

 

   

Quarter Ended

  
   

February 25, 2023

    

February 26, 2022

  
   

Wholesale

    

Retail

    

Corporate

& Other (2)

    

Total

    

Wholesale

    

Retail

    

Corporate

& Other

    

Total

  

Bassett Custom Upholstery

   $ 24,506     $ 36,159     $ -     $ 60,665     $ 31,929     $ 37,818     $ -     $ 69,747  

Bassett Leather

     6,805       494       -       7,299       12,939       240       -       13,179  

Bassett Custom Wood

     4,876       9,669       -       14,545       5,980       9,407       -       15,387  

Bassett Casegoods

     3,598       10,050       -       13,648       2,909       8,292       -       11,201  

Accessories, mattresses and other (1)

     -       8,590       2,951       11,541       -       8,350       -       8,350  

Consolidated net sales of furniture and accessories

   $ 39,785     $ 64,962     $ 2,951     $ 107,698     $ 53,757     $ 64,107     $ -     $ 117,864  

 

(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 months ended February 25, 2023 includes the sales of Noa Home, which was acquired on September 2, 2023 (see Note 3).