Bridgford Foods (BRID) - 2024 Q1 - Quarterly Report

Financial Position - For the twelve weeks ended January 26, 2024, total liabilities amounted to $3,660 million, a decrease from$3,831 million as of November 3, 2023[75]. - The Company has a total long-term debt of $2,608 million as of January 26, 2024, compared to$2,786 million as of November 3, 2023, indicating a reduction of about 6.4%[75]. - The Company maintains compliance with loan covenants, with total liabilities divided by tangible net worth not exceeding 2.0 to 1.0 as of January 26, 2024[76]. Inventory Management - The Company reported total inventories of $39,275 million as of January 26, 2024, down from$40,573 million on November 3, 2023, reflecting a decrease of approximately 3.2%[62]. - The Company’s finished goods inventory was valued at $25,067 million as of January 26, 2024, down from$26,822 million on November 3, 2023, representing a decrease of about 6.5%[62]. - The Company’s work in progress inventory increased to $2,347 million as of January 26, 2024, compared to$1,507 million on November 3, 2023, reflecting an increase of approximately 55.5%[62]. Revenue Recognition - The Company’s revenue recognition occurs at the point of product shipment, pickup, or delivery, with contracts typically being short-term in nature[56]. Tax Benefits - The Company recognized an income tax benefit of $358 million from the release of research and development credits recorded in the income tax provision for fiscal year 2020[72]. Lease Obligations - The Company’s ROU lease assets and corresponding lease liabilities are recorded within property, plant, and equipment, reflecting both current and long-term obligations[58]. - The Company’s estimated incremental interest rate for leases is approximately 5.49%[65].