What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2021-01-15 compared with 2020-01-24 · 473 added, 379 removed, 610 unchanged (58% of the section changed)

79 unchanged sentences

or that the degree of compliance with the policies or procedures may deteriorate.

assessed the effectiveness of our internal control over financial reporting for our fiscal year ended November 1, 2019.

assessed the effectiveness of our internal control over financial reporting for our fiscal year ended October 30, 2020.

on management’s assessment and the above-referenced criteria, management believes that the internal control over financial

reporting for our fiscal year ended November 1, 2019 was effective.

reporting for our fiscal year ended October 30, 2020 was effective.

Other Information

1 unchanged sentence

information required by this item will be included in the Proxy Statement, which will be filed with the Securities and Exchange

Commission not later than 120 days after the end of our fiscal year ended November 1, 2019 and is incorporated herein by reference.

Commission not later than 120 days after the end of our fiscal year ended October 30, 2020 and is incorporated herein by reference.

Information concerning our executive officers is set forth in Part I, Item 1 of this Report under the heading “Executive

2 unchanged sentences

information required by this item will be included in the Proxy Statement, which will be filed with the Securities and Exchange

Commission not later than 120 days after the end of our fiscal year ended November 1, 2019 and is incorporated herein by reference.

Commission not later than 120 days after the end of our fiscal year ended October 30, 2020 and is incorporated herein by reference.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

information required by this item will be included in the Proxy Statement, which will be filed with the Securities and Exchange

Commission not later than 120 days after the end of our fiscal year ended November 1, 2019 and is incorporated herein by reference.

Commission not later than 120 days after the end of our fiscal year ended October 30, 2020 and is incorporated herein by reference.

Compensation Plan Information

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information required by this item will be included in the Proxy Statement, which will be filed with the Securities and Exchange

Commission not later than 120 days after the end of our fiscal year ended November 1, 2019 and is incorporated herein by reference.

Commission not later than 120 days after the end of our fiscal year ended October 30, 2020 and is incorporated herein by reference.

are considered a “controlled company”

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the Board of Directors has determined that Messrs.

Andrews, Scott and Ms.

Andrews and Scott and Ms.

Schott who together comprise the Audit Committee

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Total fees billed under this arrangement for fiscal year 2020 were approximately $292,700.

Allan Bridgford Jr., son of the former senior chairman of the Board of Directors, is providing consulting services to the Chicago

plant and management.

director Allan Bridgford Jr., son of the former senior chairman of the Board of Directors, is providing consulting services to

the Chicago plant and management.

The contract on behalf of the Company with Allan Bridgford Jr.

is for consulting services at $1,200 per

is for consulting services at

$1,200 per day.

Total fees billed under this arrangement for fiscal year 2020 were approximately $169,000.

As a member of the Board

of Directors, he was paid a fee of $2,380 for each meeting attended during fiscal year 2019.

As a member of the

Board of Directors, he was paid a fee of $2,480 for each meeting attended during fiscal year 2020.

Total fees paid under this

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Under an arrangement with Allan Bridgford Jr., we accrued approximately $279,400

$481,500 of profit sharing based on fiscal year 2019 profitability to be paid out in three installments equally over the

next three years.

of profit sharing based on fiscal year 2020 profitability to be paid out in three installments equally over the next three years.

Keith Ross currently provides real estate consulting services to the Board and management.

He was paid a fee of $2,380

for each Board meeting attended and was paid an aggregate of $23,640 for meetings attended during fiscal year 2019.

fees were paid during fiscal year 2019 for consulting services.

Principal Accounting Fees and Services

He was paid a fee of $2,480 for each

Board meeting attended and was paid an aggregate of $24,600 for meetings attended during fiscal year 2020.

Fees of approximately

$37,780 were paid during fiscal year 2020 for consulting services.

Principal Accountant Fees and Services

information required by this item will be included in the Proxy Statement, which will be filed with the Securities and Exchange

Commission not later than 120 days after the end of our fiscal year ended November 1, 2019 and is incorporated herein by reference.

Commission not later than 120 days after the end of our fiscal year ended October 30, 2020 and is incorporated herein by reference.

Exhibits and Financial Statement Schedules

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Annual Report on Internal Control Over Financial Reporting

of Independent Registered Public Accounting Firm

Balance Sheets as of November 1, 2019 and November 2, 2018

Statements of Operations for years ended November 1, 2019 and November 2, 2018

Statements of Comprehensive Income for years ended November 1, 2019 and November 2, 2018

Statements of Shareholders’

Equity for years ended November 1, 2019 and November 2, 2018

Statements of Cash Flows for years ended November 1, 2019 and November 2, 2018

to Consolidated Financial Statements

Report of Independent Registered Public Accounting Firm

Consolidated Balance Sheets as of October 30, 2020 and November 1, 2019

Consolidated Statements of Operations for years ended October 30, 2020 and November 1, 2019

Consolidated Statements of Comprehensive Income for years ended October 30, 2020 and November 1, 2019

Consolidated Statements of Shareholders’

Equity for years ended October 30, 2020 and November 1, 2019

Consolidated Statements of Cash Flows for years ended October 30, 2020 and November 1, 2019

Notes to Consolidated Financial Statements

Financial Statement Schedules

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The exhibits below are filed or incorporated herein by reference .

Articles of Incorporation, as amended.

and Restated Bylaws.

Restated Articles of Incorporation, as amended.

Amended and Restated Bylaws.

Description of Capital Stock of the Registrant

Foods Corporation Defined Benefit Pension Plan.

Foods Corporation Supplemental Executive Retirement Plan.

Foods Corporation Deferred Compensation Savings Plan.

Agreement, dated August 12, 2019, between the Registrant and Allan L.

Bridgford Foods Corporation Defined Benefit Pension Plan.

Bridgford Foods Corporation Supplemental Executive Retirement Plan.

Bridgford Foods Corporation Deferred Compensation Savings Plan.

Consulting Agreement, dated August 12, 2019, between the Registrant and Allan L.

Bridgford Sr.

Purchase and Sale Agreement dated March 16, 2020 between Bridgford Foods Processing Company and CRG Acquisition, LLC.

Subsidiaries of the Registrant.

Power of Attorney (included as part of the

signature page).

Certification of Principal Executive

Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of Principal Financial

Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Power of Attorney (included as part of the signature page).

Certification of Principal Executive Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification of Principal Financial Officer, Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Certification Pursuant to 18 U.S.C.

1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Executive Officer).

Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Executive Officer).

Certification Pursuant to 18 U.S.C.

1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Financial Officer).

XBRL Instance Document.

XBRL Taxonomy Extension Schema Document.

XBRL Taxonomy Extension Calculation Linkbase Document.

XBRL Taxonomy Extension Definition Linkbase Document.

XBRL Taxonomy Extension Label Linkbase Document.

XBRL Taxonomy Extension Presentation Linkbase Document.

Each of these Exhibits constitutes a management

contract, compensatory plan or arrangement.

Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Principal Financial Officer).

Instance Document.

Taxonomy Extension Schema Document.

Taxonomy Extension Calculation Linkbase Document.

Taxonomy Extension Definition Linkbase Document.

Taxonomy Extension Label Linkbase Document.

Taxonomy Extension Presentation Linkbase Document.

of these Exhibits constitutes a management contract, compensatory plan or arrangement.

Form 10-K Summary

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Bridgford Sr.

ALLAN BRIDGFORD JR.

Bridgford Jr.

GREGORY SCOTT

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have audited the accompanying consolidated balance sheets of Bridgford Foods Corporation and its subsidiaries (the Company) as

of November 1, 2019 and November 2, 2018, the related consolidated statements of operations, comprehensive income, shareholders’

of October 30, 2020 and November 1, 2019, the related consolidated statements of operations, comprehensive income, shareholders’

equity and cash flows for the years then ended, and the related notes to the consolidated financial statements (collectively,

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In our opinion, the financial statements present fairly, in all material respects, the financial position

of the Company as of November 1, 2019 and November 2, 2018, and the results of its operations and its cash flows for the years

of the Company as of October 30, 2020 and November 1, 2019, and the results of its operations and its cash flows for the years

then ended, in conformity with accounting principles generally accepted in the United States of America.

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We believe that our audits provide a reasonable basis for our opinion.

Squar Milner LLP

Baker Tilly US, LLP

have served as the Company’s auditor since 2009.

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Current assets:

and cash equivalents

Accounts receivable,

less allowance for doubtful accounts of $31 and $33, respectively and promotional allowances of $2,974 and $2,122, respectively

Cash and cash equivalents

Restricted cash

Accounts receivable, less allowance for doubtful accounts of $16 and $31, respectively and promotional allowances of $2,550 and $2,974, respectively

Inventories, net

Refundable income taxes

Prepaid expenses

Total current assets

Property, plant and equipment, net of

accumulated depreciation and amortization of $54,015 and $66,337, respectively

Property, plant and equipment, net of accumulated depreciation and amortization of $58,686 and $54,015, respectively

Other non-current assets

Deferred income

LIABILITIES AND

SHAREHOLDERS’

Deferred income taxes

LIABILITIES AND SHAREHOLDERS’

Current liabilities:

Accounts payable

Accrued payroll,

advertising and other expenses

Accrued payroll, advertising and other expenses

Income taxes payable

Current notes payable

Current notes payable –

equipment (Note 5)

portion of non-current liabilities

Current portion of non-current liabilities

Total current liabilities

Long-term notes payable –

equipment (Note 5)

Deferred income taxes

Non-current liabilities

Total liabilities

Contingencies and commitments (Notes

Contingencies and commitments (Notes 3, 5 and 6)

Shareholders’

Preferred stock,

without par value;

Preferred stock, without par value;

Authorized, - 1,000 shares;

issued and outstanding –

Common stock, $1.00

Common stock, $1.00 par value;

Authorized, - 20,000 shares;

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Retained earnings

other comprehensive loss

Accumulated other comprehensive loss

Total shareholders’

Total liabilities

and shareholders’

Total liabilities and shareholders’

accompanying notes to consolidated financial statements.

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STATEMENTS OF OPERATIONS

the fiscal years ended November 1, 2019 and November 2, 2018

the fiscal years ended October 30, 2020 and November 1, 2019

thousands, except share and per share amounts)

Cost of products

Selling, general and administrative

Loss (gain) on

sale of property, plant and equipment

October 30, 2020

November 1, 2019

Cost of products sold

Selling, general and administrative expenses

(Gain) loss on sale of property, plant and equipment

Income before taxes

Provision for

(Benefit on) provision for income taxes

Basic earnings per share

Shares used to

compute basic earnings per share

Shares used to compute basic earnings per share

accompanying notes to consolidated financial statements.

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STATEMENTS OF COMPREHENSIVE INCOME

the fiscal years ended November 1, 2019 and November 2, 2018

Other comprehensive

(loss) income from defined benefit plans

Other postretirement benefit plans:

Actuarial gain (loss)

Prior service cost

Other comprehensive income (loss) from other postretirement benefit plans, net

Other comprehensive loss, before taxes

Tax benefit on other comprehensive loss

Change in other comprehensive (loss), net of tax

Comprehensive income, net of tax

accompanying notes to consolidated financial statements.

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STATEMENTS OF SHAREHOLDERS’

the fiscal years ended November 1, 2019 and November 2, 2018

the fiscal years ended October 30, 2020 and November 1, 2019

comprehensive

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Balance, November 2, 2018

2018-02 (Notes 1 and 4)

change in defined benefit plans and other benefit plans

Balance, November 2, 2018

change in defined benefit plans and other benefit plans, net of tax

Net change in defined benefit plans and other benefit plans, net of tax

Balance, November 1, 2019

Net change in defined benefit plans and other benefit plans, net of tax

Balance, October 30, 2020

accompanying notes to consolidated financial statements.

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STATEMENTS OF CASH FLOWS

the fiscal years ended November 1, 2019 and November 2, 2018

the fiscal years ended October 30, 2020 and November 1, 2019

October 30, 2020

November 1, 2019

Cash flows from operating activities:

Adjustments to reconcile net income

to net cash provided by operating activities:

Provision for losses

on accounts receivable

(Provision for)

Adjustments to reconcile net income to net cash provided by operating activities:

(Recovery of) provision for losses on accounts receivable

Reduction in promotional allowances

Loss (gain) on sale

of property, plant and equipment

Deferred income

(Gain) loss on sale of property, plant and equipment

Deferred income taxes, net

Changes in operating assets and liabilities:

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Prepaid expenses

Refundable income

Other non-current

Refundable income taxes

Other non-current assets

Accounts payable

Accrued payroll,

advertising and other expenses

Accrued payroll, advertising and other expenses

Income taxes payable

Current portion

of non-current liabilities

cash provided by operating activities

Cash used in investing activities:

Proceeds from sale

of property, plant and equipment

to property, plant and equipment

cash used in investing activities

Cash used in financing activities:

Payment of capital

lease obligations

Proceeds from bank

of bank borrowings

cash provided by (used in) financing activities

Net decrease in cash and cash

Cash and cash

equivalents at beginning of year

Cash and cash

equivalents at end of year

Supplemental disclosure of cash flow

paid for income taxes

paid for interest

Transportation

equiptment financed by lease obligations

Current portion of non-current liabilities

Non-current liabilities

Net cash provided by operating activities

Cash flows from investing activities:

Proceeds from sale of property, plant and equipment

Proceeds from sale of assets in escrow

Additions to property, plant and equipment

Net cash used in investing activities

Cash flows from financing activities:

Payment of capital lease obligations

Proceeds from bank borrowings

Repayments of bank borrowings

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents and restricted cash

Cash and cash equivalents and restricted cash at beginning of year

Cash and cash equivalents and restricted cash at end of year

Supplemental disclosure of cash flow information:

Cash paid for income taxes

Cash paid for interest

Transportation equipment financed by lease obligations

accompanying notes to consolidated financial statements.

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meat, and a manufacturer and distributor of frozen food products for sale on a retail and wholesale basis.

We and our subsidiaries

We, including our subsidiaries,

are primarily engaged in the manufacturing, marketing and distribution of an extensive line of frozen, refrigerated, and snack

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If an impairment is indicated, we measure the fair value of assets to determine if and when adjustments are recorded.

has evaluated events subsequent to November 1, 2019 through the date the accompanying consolidated financial statements were filed

has evaluated events subsequent to October 30, 2020 through the date the accompanying consolidated financial statements were filed

with the Securities and Exchange Commission for transactions and other events that may require adjustment of and/or disclosure

in such financial statements.

On December 19, 2019, we entered into a third master collateral loan and security agreement with

Wells Fargo Bank, N.A for $3,750 in equipment financing.

Pursuant to the loan agreement, we borrowed $3,750 to purchase specific

equipment for our new Chicago processing facility at a fixed rate of 3.70% per annum.

The loan term is seven years and is secured

by the purchased equipment.

The funds were received on December 23, 2019.

The master collateral loan and security agreement with

Wells Fargo Bank, N.A.

contains various affirmative and negative covenants that limit the use of funds and define other provisions

The main financial covenants are listed below:

Liabilities divided by Tangible Net Worth not greater than 2.5 to 1.0 at each fiscal

Ratio not less than 1.0 to 1.0 at each fiscal quarter end,

income after taxes not less than one dollar on a quarterly basis, determined as of each

fiscal quarter end.

Company maintains a line of credit with Wells Fargo Bank, N.A.

The Company maintains a line of credit with Wells Fargo Bank, N.A.

that expires on March 1, 2022.

Under the terms of this line of

credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or LIBOR plus 1.5%.

borrowed $2,000 under this line of credit on November 24, 2019.

The Company borrowed an additional 2.500,000 under the line

of credit on January 24, 2020.

on management’s review, no other material events were identified that require adjustment to the financial statements or

additional disclosure.

Under the terms of this line of credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or

LIBOR plus 1.5%.

The Company borrowed an additional $2,000 under the line of credit on December 2, 2020.

November 3, 2020, Allan Bridgford Jr.

resigned as a member of the Board of Directors of Bridgford Foods Corporation.

The resignation

was not the result of a disagreement with management regarding operations, policies or practices of the Company.

will continue to serve as a consultant to the Company.

previously reported, on March 16, 2020, Bridgford Food Processing Corporation (“BFPC”), a wholly-owned subsidiary

of the Company, entered into a Purchase and Sale Agreement (the “CRG Purchase Agreement”) with CRG Acquisition, LLC

(“CRG”), pursuant to which BFPC agreed to sell to CRG, pursuant to the terms and conditions set forth in the CRG Purchase

Agreement, a parcel of land including an approximate 156,000 square foot four-story industrial food processing building located

Green Street in Chicago, Illinois (the “Property”).

The purchase price for the Property is $60,000 subject

to a due diligence period and certain closing adjustments and prorations, and is conditioned upon, among other customary closing

conditions, CRG receiving zoning and other governmental approvals necessary for the construction and development of a mixed use

project on the Property in accordance with certain development plans to be approved by the City of Chicago.

The cost basis of

the Property was immaterial.

November 2, 2020, the Company executed a fourth amendment to the CRG Purchase Agreement.

Under the original terms and conditions

of the CRG Purchase Agreement, the closing of the sale of the Property to CRG would occur on the date that is thirty (30) days

after CRG’s receipt of the necessary zoning approvals, but in any event no earlier than October 31, 2020 and no later than

March 31, 2021.

The first amendment dated as of April 10, 2020 extended the inspection period to June 1, 2020.

The second amendment

dated as of June 1, 2020 extended the inspection period to July 31, 2020, zoning period to February 1, 2021 and closing date to

February 5, 2021.

The third amendment dated July 31, 2020 extended the inspection period to October 31, 2020, zoning period to

April 30, 2021 and closing date to May 6, 2021.

The fourth amendment dated November 2, 2020 further extended the inspection period

to February 1, 2021, the zoning period to August 2, 2021 and closing date to August 31, 2021.

The escrow account has received

$1,350 in earnest money through October 30, 2020.

We have received a total of $225 which is non-refundable earnest money and

thus not part of restricted cash.

on management’s review, no other material subsequent events were identified that require adjustment to the financial statements

or additional disclosure.

receivable are recorded at net realizable value.

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Our accounts receivable consists mainly of trade receivables from customer sales.

We evaluate the collectability

of our accounts receivable based on a several factors.

The provision for doubtful accounts receivable is based on historical

trends and current collectability risk.

Our provision for doubtful accounts was $31 and $33 as of November 1, 2019 and November

We evaluate the collectability of

our accounts receivable based on several factors.

The provision for doubtful accounts receivable is based on historical trends

and current collectability risk.

Our provision for doubtful accounts was $16 and $31 as of October 30, 2020 and November 1, 2019,

respectively.

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comprised 36.9% of revenues in fiscal year 2020 and 19.8% of total accounts receivable was due from Wal-Mart®

as of November 1, 2019.

as of October 30, 2020.

Sales to Wal-Mart®

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and 31.1% of total accounts receivable was due from Dollar General®

as of November 1, 2019.

as of October 30, 2020.

Sales to Dollar General®

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as of November 1,

have considered the impact of federal, state and local government actions related to the global novel coronavirus pandemic (“COVID-19”

or “pandemic”) on our consolidated financial statements.

The business disruptions associated with the pandemic had

a significant negative impact on our consolidated financial statements for the fifty-two week period ended October 30, 2020.

expect these events to have future business impact, the extent of which is uncertain and largely subject to whether the severity

worsens, or the duration of current business shutdowns continue.

These impacts could include but may not be limited to risks and

uncertainty related to shifts in demand between sales channels, market volatility, constraints in our supply chain, our ability

to operate production facilities and worker availability.

These unknowns may subject the Company to future risks related to long-lived

asset impairments, increased reserves for uncollectible accounts, price and availability of ingredients and raw materials used

in our products and adjustments to reflect the market value of our inventory.

Company and subsidiaries operate in two business segments - the processing and distribution of frozen foods products, and the

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Any taxes collected on behalf of the government are excluded from net revenue.

record revenue at transaction price which is measured as the amount of consideration we anticipate to receive in exchange for

providing product to our customers.

record revenue at the transaction price which is measured as the amount of consideration we anticipate to receive in exchange

for providing product to our customers.

Revenue is recognized as the net amount estimated to be received after deducting estimated

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market funds and treasury bills.

Cash equivalents totaled $3,478 as of November 1, 2019 and $8,179 as of November 2, 2018.

material cash and cash equivalents as of November 1, 2019 were held at Wells Fargo Bank N.A.

Cash equivalents totaled $4,302 as of October 30, 2020 and $3,478 as of November 1, 2019.

material cash and cash equivalents as of October 30, 2020 were held at Wells Fargo Bank N.A.

from deposits in escrow of $1,125 as of October 30, 2020 relate to the pending sale of a parcel of land including an approximate

156,000 square foot four-story industrial food processing building located at 170 N.

Green Street in Chicago, Illinois.

to Note 1 –

Subsequent Events for more information.

value measurements

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Company does not have any assets or liabilities measured at fair value on a recurring or non-recurring basis for the fiscal years

ended November 1, 2019 and November 2, 2018.

ended October 30, 2020 and November 1, 2019.

are valued at the lower of cost (which approximates actual cost on a first-in, first-out basis) or net realizable value.

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to 10 years for machinery and equipment, and 3 to 5 years for transportation equipment.

We are building a processing plant from

the ground up and as such have attributed long useful lives accordingly to these types of assets employed at the

new facility in Chicago.

property and equipment that meet lease criteria are capitalized at the lower of the present value of the minimum payments required

under the lease or the fair value of the asset at inception of the lease and are included within property, plant and equipment

on the consolidated balance sheet.

If any, obligations under capital leases are accounted for as current and noncurrent liabilities

on the consolidated balance sheet.

Amortization is calculated on a straight-line method based upon the shorter of the estimated

useful life of the asset or the lease term.

We built a processing plant from the ground

up and as such have attributed long useful lives accordingly to these types of assets employed at the new facility in Chicago.

The Company incurred interest costs of $879 for fiscal year 2020, all of which was capitalized in relation to the construction

of the new facility in Chicago.

are recognized in accordance with Accounting Standards Update (“ASU”) 2016-02 Leases (ASC 842) which requires a lessee

to recognize assets and liabilities with lease terms of more than 12 months.

We lease or rent property for such operations as

storing inventory, packaging or processing product, equipment and parking vehicles.

We analyze our agreements to evaluate whether

or not a lease exists by determining what assets exist for which we control usage for a period of time in exchange for consideration.

In the event a lease exists, we classify it as a finance or operating lease and record a right-of-use (“ROU”) asset

and the corresponding lease liability at the inception of the lease.

In the case of month-to-month lease or rental agreements

with terms of 12 months or less, we made an accounting policy election to not recognize lease assets and liabilities and record

them on a straight-line basis over the lease term.

The storage units rented for use by our Snack Food Product Segment direct store

delivery route system are not costly to relocate, contain no significant leasehold improvements, no degree of integration over

leased assets, orders can be fulfilled by another route storage unit interchangeably, no specialized assets exist, market price

is paid for storage units and there is no guarantee of debt.

lease assets are recorded within property, plant and equipment, net of accumulated depreciation and amortization.

The Company’s

leases of long-haul trucks used in its Frozen Food Products Segment qualify as finance leases.

Finance lease liabilities are recorded

as a separate line item on the consolidated balance sheets reflecting both the current and long-term obligation.

The classification

as a finance or operating lease determines whether the recognition, measurement and presentation of expenses and cash flows are

considered operating or financing.

insurance policies

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The development of these accruals requires judgments about tax issues, potential outcomes and timing.

4 to the Consolidated Financial Statements).

Although the outcome of these tax audits is uncertain, in management’s opinion

adequate provisions for income taxes have been made for potential liabilities emanating from these reviews.

If actual outcomes

differ materially from these estimates, they could have a material impact on our results of operations.

4 for further information).

Although the outcome of these tax audits is uncertain, in management’s opinion adequate provisions

for income taxes have been made for potential liabilities emanating from these reviews.

If actual outcomes differ materially from

these estimates, they could have a material impact on our results of operations.

measure and recognize compensation expense for all share-based payments to employees, including grants of employee stock options,

16 unchanged sentences

or cumulative effect adjustment approach.

The guidance become effective for annual reporting periods that begin after December

The guidance became effective for annual reporting periods beginning after December

15, 2017, including interim periods within that reporting period, with early adoption permitted.

3 unchanged sentences

our consolidated financial statements.

For further information please refer to Part I, Item 1, Notes to Consolidated Financial

Statements under Revenues.

Disaggregated revenue is disclosed in Part I, Item 1, Notes to Consolidated Financial Statements, Note

Segment Information.

For further information please refer to Revenues above.

Disaggregated revenue is disclosed

in Note 7 - Segment Information.

January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities”

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We have analyzed all lease transactions during fiscal year

2019 and 2020 to date.

The Company elected not to reassess expired contracts or adjust comparative periods.

The Company determined that no change

to current accounting treatment is warranted due to the underlying nature of our leases.

In the case of month-to-month lease or

rental agreements with terms of 12 months or less, the Company made an accounting policy election to not recognize lease assets

and liabilities.

The Company performed a detailed analysis and determined that there were no indicators of longer-term leases

at this time.

The application of this pronouncement will result in additional disclosures detailing our lease arrangements.

Company continues to evaluate this statement and its impact on its results of operations or financial position but do not expect

a material impact on our consolidated financial statements.

The Company determined

that no change to current accounting treatment is warranted for most transactions due to the underlying nature of our leases.

In the case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy

election to not recognize lease assets and liabilities.

The Company performed a detailed analysis and determined that the only

indication of a long-term lease was Hogshed Ventures, LLC.

The accounting treatment of this lease for warehouse storage included

establishing a right-of-use asset and corresponding liability was recorded for Hogshed Ventures, LLC for 40th Street in Chicago

during the fourth quarter of fiscal 2020.

The application of this pronouncement resulted in additional disclosures detailing our

lease arrangements.

The Company adopted this guidance during the first quarter of fiscal 2020 and it did not have a material impact

on our consolidated financial statements.

October 2016, the FASB issued ASU 2016-16, “Income Taxes –

1 unchanged sentence

The guidance involves eight specific cash flow issues and aims to unify accounting for these transactions.

The guidance becomes

The guidance became

effective for annual reporting periods beginning after December 15, 2017 with early adoption permitted.

6 unchanged sentences

benefit or other postretirement benefits.

The guidance becomes effective for annual and interim reporting periods beginning after

The guidance became effective for annual and interim reporting periods beginning after

December 15, 2017 with early adoption permitted.

Additional disclosure reconciling net periodic benefit cost is detailed in Item

I, Notes to the Consolidated Financial Statements under Note 3, Retirement and Other Benefit Plans.

The Company adopted this guidance

during the first quarter of fiscal 2019 and it did not have a material impact on our consolidated financial statements.

February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220):

Reclassification

of Certain Tax Effects from Accumulated Other Comprehensive Income”.

The guidance allows reclassification from accumulated

other comprehensive income to retained earnings for stranded tax effects resulting from the application of the U.S.

The guidance is effective for annual and interim reporting periods beginning after December 15, 2018 with early adoption

The Company elected to early adopt this guidance during the quarter ended January 26, 2018.

Adoption of this guidance

had a material impact on retained earnings and other comprehensive income (see the Consolidated Statements of Shareholders’

Equity contained in this Report).

Additional disclosure reconciling net periodic benefit cost is detailed in Note

3 - Retirement and Other Benefit Plans.

The Company adopted this guidance during the first quarter of fiscal 2019 and it did not

have a material impact on our consolidated financial statements.

December 2019, the FASB issued ASU 2019-12, “Income Taxes –

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Transportation equipment

Accumulated depreciation

and amortization

Right of use assets

Construction in process

Accumulated depreciation and amortization

Other non-current assets:

Cash surrender value benefits

Accrued payroll, advertising and other

Payroll, vacation, payroll taxes and

employee benefits

Accrued payroll, advertising and other expenses:

Payroll, vacation, payroll taxes and employee benefits

Accrued advertising and broker commissions

Property taxes

Current portion of non-current liabilities

(Notes 3 and 6):

Current portion of non-current liabilities (Notes 3 and 6):

Defined benefit retirement plan

2 unchanged sentences

Capital lease obligation

Customer deposits

Postretirement

healthcare benefits

Escrow and customer deposits

Right-of-use leases

Postretirement healthcare benefits

Non-current liabilities (Note 3):

3 unchanged sentences

Capital lease obligation

Postretirement

healthcare benefits

Right-of-use leases

Deferred payroll taxes

Postretirement healthcare benefits

3 - Retirement and Other Benefit Plans:

11 unchanged sentences

pension cost consisted of the following:

October 30, 2020

November 1, 2019

Interest cost

Expected return on plan assets

of unrecognized loss

Amortization of unrecognized loss

Net pension cost

5 unchanged sentences

benefit obligation, plan assets, and funded status of these plans as of the fiscal years ended are as follows:

October 30, 2020

November 1, 2019

Change in plan assets:

value of plan assets - beginning of year

Fair value of plan assets - beginning of year

Employer contributions

Actual return on

value of plan assets - end of year

Actual return on plan assets

Benefits paid

Fair value of plan assets - end of year

Change in benefit obligations:

Benefit obligations

- beginning of year

Benefit obligations - beginning of year

Interest cost

Actuarial gain (loss)

obligations - end of year

Benefits paid

Benefit obligations - end of year

Funded status of the plans

Unrecognized prior service costs

net actuarial loss

Unrecognized net actuarial loss

Net amount recognized

1 unchanged sentence

The discount rates were based on FTSE Pension

Liability Index (formerly Citibank) as of October 31, 2019 and September 30, 2018, respectively.

Liability Index (formerly Citibank) as of October 31, 2020 and November 1, 2019, respectively.

assets are primarily invested in marketable equity securities, corporate and government debt securities and are administered by

4 unchanged sentences

into consideration inflation rate forecasts.

Our expected employer contribution to the plans in fiscal year 2020 is zero.

fiscal year 2019, our actuary updated mortality tables from the mortality projection scale using MP-2017 Scaling to MP-2018 Scaling.

The expected rate of return on plan assets remained the same at 7.00% effective for fiscal years 2019 and 2018, respectively.

No expected employer contribution to the plans in fiscal year 2021 is planned.

fiscal year 2020, our actuary updated mortality tables from the RP-2014 Total Dataset Mortality Table with Scaling to Pri-2012

Total Dataset Mortality Table with MP-2020 Scaling.

The expected rate of return on plan assets remained the same at 7.00% effective

for fiscal years 2020 and 2019, respectively.

actual and target allocation for plan assets are as follows:

3 unchanged sentences

International (equities only)

Other (Government/Corporate, Bonds)

fair value of our pension plan assets as of November 1, 2019 and the level under which fair values were determined, using the

fair value of our pension plan assets as of October 30, 2020 and the level under which fair values were determined, using the

hierarchy described in Note 1, is as follows:

Total plan assets

payments for the pension benefits are as follows:

Pension Benefits

Retirement Plans

10 unchanged sentences

Executive Retirement Plan

fiscal year 1991, we adopted a non-qualified supplemental retirement plan for certain key employees.

Benefits provided under the

plan are equal to 60% of the employee’s final average earnings, less amounts provided by our defined benefit pension plan

and amounts available through Social Security.

benefits otherwise available to certain key executives under the Primary Benefit Plan have been limited by the effects of the

Tax Equity and Fiscal Responsibility Act of 1982 (“TEFRA”) and the Tax Reform Act of 1986 (“TRA”).

offset the loss of retirement benefits associated with TEFRA and TRA, the Company has adopted a non-qualified “makeup”

benefit plan (the “Supplemental Executive Retirement Plan”).

Benefits will be provided under the Supplemental Executive

Retirement Plan in an amount equal to 60% of each participant’s final average earnings minus any pension benefits and primary

insurance amounts available to them under Social Security.

However, in all cases the benefits are capped at $120,000 per year

Benefits provided under this plan for William L.

Bridgford and Raymond F.

Lancy are calculated at 50%

of final average earnings, capped at $200,000 per year, without offsets for other pension or Social Security benefits.

payable related to these plans and included in the accompanying consolidated financial statements were $6,544 and $6,428

as of November 1, 2019 and November 2, 2018, respectively.

as of October 30, 2020 and November 1, 2019, respectively.

In connection with these arrangements we are the beneficiary of

1 unchanged sentence

The aggregate cash surrender value of these policies,

included in non-current assets, was $12,289 and $11,624 as of November 1, 2019 and November 2, 2018, respectively.

included in non-current assets, was $13,195 and $12,289 as of October 30, 2020 and November 1, 2019, respectively.

payments for executive postretirement benefits are as follows:

Postretirement

Executive Postretirement Benefits

Compensation Plan for Certain Key Executives

3 unchanged sentences

The total amount payable related to this arrangement was $6,070

and $9,283 as of November 1, 2019 and November 2, 2018, respectively.

and $7,919 as of October 30, 2020 and November 1, 2019, respectively.

Future payments are approximately $3,074, $1,996, $877,

6 unchanged sentences

the discount rate used to develop the net periodic postretirement benefit expense, which is determined at the end of the fiscal

periodic postretirement healthcare (benefit) consisted of the following:

periodic postretirement healthcare cost (benefit) consisted of the following:

October 30, 2020

November 1, 2019

Interest cost

Amortization of prior service cost

of actuarial gain

postretirement healthcare (benefit)

average assumptions for the fiscal years ended November 1, 2019 and November 2, 2018 are as follows:

Discount rate

Medical trend rate next year

Ultimate trend rate

Year ultimate trend rate is achieved

Amortization of actuarial gain

Net periodic postretirement healthcare cost (benefit)

average assumptions for the fiscal years ended October 30, 2020 and November 1, 2019 are as follows:

trend rate next year

ultimate trend rate is achieved

table below shows the estimated effect of a 1% increase in healthcare cost trend rate on the following:

Interest cost plus service

Accumulated postretirement healthcare

Interest cost plus service cost

Accumulated postretirement healthcare obligation

table below shows the estimated effect of a 1% decrease in healthcare cost trend rate on the following:

Interest cost plus service

Accumulated postretirement healthcare

Interest cost plus service cost

Accumulated postretirement healthcare obligation

healthcare obligation and funded status of this plan as of the fiscal years ended are as follows:

Change in accumulated postretirement

healthcare obligation:

obligation - beginning of year

Change in accumulated postretirement healthcare obligation:

Healthcare obligation - beginning of year

Interest cost

Actuarial gain

obligation –

Benefits paid

Healthcare obligation –

Funded status of the plans

Unrecognized prior

service costs

Unrecognized net

actuarial gain

amounts recorded in other comprehensive income

Postretirement

healthcare liability

Unrecognized prior service costs

Unrecognized net actuarial gain

Unrecognized amounts recorded in other comprehensive income

Postretirement healthcare liability

payments for the postretirement benefits are as follows:

Postretirement

Postretirement Healthcare

Plan for Sales, Administrative, Supervisory and Certain Other Employees

4 unchanged sentences

4 - Income Taxes:

provision for income taxes includes the following:

total tax provision differs from the expected amount computed by applying the statutory federal income tax rate to income before

income taxes as follows:

Provision for federal income

taxes at the applicable statutory rate

Increase in provision resulting from

state income taxes, net of federal income tax benefit

benefit on or provision for income taxes includes the following:

October 30, 2020

November 1, 2019

total tax (benefit) provision differs from the expected amount computed by applying the statutory federal income tax rate to income

before income taxes as follows:

October 30, 2020

November 1, 2019

Provision for federal income taxes at the applicable statutory rate

Increase in provision resulting from state income taxes, net of federal income tax benefit

Change in federal rate –

NOL carryback

Research and development tax credit

Non-taxable life insurance gain

Domestic Production Activities Deduction

income taxes result from differences in the bases of assets and liabilities for tax and accounting purposes.

4 unchanged sentences

Employee benefits

Deferred payroll tax

Incentive compensation

Pension and health care benefits

Net operating loss carry-forward and

Valuation allowance

established against state NOL

income tax assets, net

Net operating loss carry-forward and credits

Valuation allowance established against state NOL

Deferred income tax assets, net

is required to evaluate whether a valuation allowance should be established against its deferred tax assets based on the consideration

of all available evidence using a "more likely than not"

Realization of deferred tax assets is dependent upon

taxable income in prior carryback years, estimates of future taxable income, tax planning strategies, and reversals of existing

of all available evidence using a “more likely than not”

Realization of deferred tax assets is dependent

upon taxable income in prior carryback years, estimates of future taxable income, tax planning strategies, and reversals of existing

taxable temporary differences.

of November 1, 2019, the Company did not have any valuation allowance against its federal net deferred tax assets.

reevaluated the need for a valuation allowance at the end of 2019 and determined that some of its California NOL may not be utilized.

Therefore, a valuation allowance of $77 has been retained for such portion of California NOL.

of November 1, 2019, the Company had net operating loss carryforwards of approximately $9,979 for federal and $874 for state purposes.

of October 30, 2020, the Company did not have any valuation allowance against its federal net deferred tax assets.

reevaluated the need for a valuation allowance at the end of fiscal 2020 and 2019 and determined that some of its California net

operating loss (“NOL”) may not be utilized.

Therefore, a valuation allowance of $77 has been retained for such portion

of California NOL.

of October 30, 2020, the Company had NOL carryforwards of approximately $2,934 for federal and $4,233 for state

The federal loss will be carried forward indefinitely until it can be utilized against future taxable income.

The state loss carryforwards

will expire at various dates from 2023 through 2034.

of November 1, 2019, we have provided a liability of $90 for unrecognized tax benefits related to various federal and state income

loss carryforwards will expire at various dates from 2023 through 2040.

of October 30, 2020, we have provided a liability of $169 for unrecognized tax benefits related to various federal and state income

None of this liability will reduce our effective income tax rate if the asset is recognized in future reporting periods.

4 unchanged sentences

reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows:

at beginning of year

Additions based on

tax positions related to the current year

Additions for tax positions

of prior years

Reductions for tax

positions of prior years

at end of year

October 30, 2020

November 1, 2019

Balance at beginning of year

Additions based on tax positions related to the current year

Additions for tax positions of prior years

Reductions for tax positions of prior years

Balance at end of year

recognize any future accrued interest and penalties related to unrecognized tax benefits in income tax expense.

As of November

1, 2019, we had approximately $18 in accrued interest and penalties which is included as a component of the $90

unrecognized tax benefit noted above.

As of October

30, 2020, we had approximately $21 in accrued interest and penalties which is included as a component of the $169 unrecognized

tax benefit noted above.

federal income tax returns are open to audit under the statute of limitations for the fiscal years 2017 through 2019.

3 unchanged sentences

do not anticipate a significant change to the total amount of unrecognized tax benefits within the next 12 months.

March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the

COVID-19 pandemic.

The CARES Act, among other things, permits NOL carryovers and carrybacks to offset 100% of taxable income for

taxable years beginning before January 01, 2021.

In addition, the CARES Act allows NOLs incurred in taxable years beginning after

December 31, 2017 and before January 01, 2021 to be carried back to each of the five preceding taxable years to generate a refund

of previously paid income taxes.

The Company is currently evaluating the impact of various provisions of the CARES Act, but at

present, expects that the NOL carryback provision of the CARES Act would result in a material cash benefit to us.

has filed a federal income tax return for tax year 2019 (fiscal year 2020) and carried back a taxable loss of $9,900 to tax years

2014 (fiscal year 2015) and 2015 (fiscal year 2016).

Furthermore, the Company estimates additional taxable loss for tax year 2020

(current fiscal year 2021) which can be carried back to remaining taxable income of tax year 2015 (fiscal year 2016) and taxable

income of tax years 2016 (fiscal year 2017) and 2018 (fiscal year 2019).

December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act (the “Tax Act”).

The Tax Act includes

significant changes to the U.S.

tax code that affected our fiscal year ended November 2, 2018, and future periods, including,

but not limited to, (1) reduced the corporate federal income tax rate from 35% to 21%, (2) bonus depreciation that allowed

for full expensing of qualified property in the year placed in service, and (3) the repeal of the domestic production activity

deduction beginning with our fiscal year 2019.

Section 15 of the Internal Revenue Code (the “Code”) stipulates that

our fiscal year ended November 2, 2018 had a blended corporate tax rate of 23.07%, which is based on the applicable tax

rates before and after the Tax Act and the number of days in the year.

Among other significant

changes, the Tax Act reduced the corporate federal income tax rate from 35% to 21%.

The carryback of NOLs from tax years 2019

and 2020 under the CARES Act to pre- Tax Act years will generate an income tax benefit due to the differential in income tax rates.

GAAP, specifically ASC Topic 740, Income Taxes, the tax effects of changes in tax laws must be recognized in the period

in which the law is enacted, or December 22, 2017, for the Tax Act.

ASC Topic 740 also requires deferred tax assets and liabilities

to be measured at the enacted tax rate expected to apply when temporary differences are to be realized or settled.

date of enactment, the Company’s deferred taxes were re-measured based upon the new tax rates.

Company adopted ASU 2018-02, “Income Statement-Reporting Other Comprehensive Income (OCI) (Topic 220)”

in year ended

November 2, 2018.

As a result of the remeasurement of deferred tax assets related to the Tax Act, we reclassified $2,529 from

Other Comprehensive Income to Retained Earnings.

in which the law is enacted, or March 27, 2020, for the CARES Act.

Thus, at the date of enactment, in the second quarter, the

Company recorded an income tax benefit of $1,100 which represented the impact of the carryback of NOL related to tax year 2019

(fiscal year 2020) which could be estimated with reasonable certainty at that time.

The tax benefit

on account of the current year NOL carryback is recorded as a component of the annual effective tax rate per guidance provided

in ASC Topic 740.

effective tax rate was -47.2% and 24.0% for fiscal years 2020 and 2019, respectively.

The effective tax rate for fiscal year 2020

was impacted by the rate differential on NOL carryback available under the CARES Act discussed in the paragraphs above.

the effective tax rates for fiscal years 2020 and 2019 were impacted by such items as non-deductible meals and entertainment,

non-taxable gains and losses on life insurance policies and state income taxes.

5 - Line of Credit and Borrowing Agreement:

maintain a line of credit with Wells Fargo Bank, N.A.

that expires on March 1, 2020.

Under the terms of this line of credit, we

may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or LIBOR plus 1.5%.

The borrowing agreement contains

various covenants, the more significant of which require us to maintain a minimum tangible net worth, a minimum quick ratio, a

minimum net income after tax and total capital expenditures less than $7,500.

The Company was in violation of the capital

expenditure covenant at November 1, 2019 which was subsequently waived (per letter dated December 16, 2019).

Company borrowed $2,000 under this line of credit on April 15, 2019, which was repaid on April 25, 2019.

December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N.A for up to $15,000

in equipment financing.

Pursuant to the loan agreement, we made two borrowings of $7,500 each, to purchase specific equipment

for our new Chicago processing facility at a fixed rate of 4.13% and 3.98%, respectively, per annum.

The loan terms are seven

years and are secured by the purchased equipment.

The first funding of $7,500 was received on December 28, 2018.

The second funding

was received on April 23, 2019.

The master collateral loan and security agreement with Wells Fargo Bank, N.A.

contains various

affirmative and negative covenants that limit the use of funds and define other provisions of the loan.

The main financial covenants

are listed below:

Liabilities divided by Tangible Net Worth (as defined) not greater than 2.5 to 1.0 at each fiscal quarter,

Ratio (as defined) not less than 1.0 to 1.0 at each fiscal quarter end, and

income after taxes not less than one dollar on a quarterly basis, determined as of each fiscal quarter end.

first secured equipment note payable is due with monthly principal and interest payments of $103 commencing on January 31, 2019

for 84 monthly installments including interest of 4.13% per annum.

The second secured equipment note payable is due with monthly

principal and interest payments of $102 commencing on May 31, 2019 for 84 monthly installments including interest of 3.98% per

equipment notes payable to Wells Fargo Bank, N.A.

Company maintains a line of credit with Wells Fargo Bank, N.A.

that extends through March 1, 2022.

Under the terms of this line

of credit, we may borrow up to $7,500 at an interest rate equal to the bank’s prime rate or LIBOR plus 1.5%.

$2,000 under this line of credit on November 24, 2019 and $2,500 on January 24, 2020 for a combined total of $4,500.

the balance on this line of credit with Wells Fargo Bank, N.A.

on May 13, 2020 of $4,500 with the proceeds from the fifth borrowing

of $7,200 under the master collateral loan and security agreement with Wells Fargo Bank, N.A.

described below.

The line of credit

contains various covenants, the more significant of which require us to maintain a minimum tangible net worth, a minimum quick

ratio, a minimum net income after tax and total capital expenditures less than $7,500.

The Company was in compliance with all

covenants as of October 30, 2020.

Subsequent to October 30, 2020, we borrowed $2,000 under the line of credit on December 2, 2020.

December 26, 2018, we entered into a master collateral loan and security agreement with Wells Fargo Bank, N.A.

(the “Original

Wells Fargo Loan Agreement”) for up to $15,000 in equipment financing.

Pursuant to the Wells Fargo Loan Agreement, we borrowed

the following amounts.

and Number (1)

Funds Received

Amount and Date

7 years for 84 installment payments.

October 30, 2020

November 1, 2019

Secured equipment notes payable to Wells Fargo Bank, N.A.

collateralized by equipment for the new Chicago processing facility.

current portion of notes payable

long-term notes payable

Company was in compliance with all covenants under the master collateral loan and security agreement as of November 1, 2019.

Less current portion of notes payable

Total long-term notes payable

Wells Fargo Loan Agreement as amended, contains various affirmative and negative covenants that limit the use of funds and define

other provisions of the loan.

The main financial covenants are listed below:

Liabilities divided by Tangible Net Worth not greater than 2.5 to 1.0 at each fiscal quarter,

Ratio not less than 1.0 to 1.0 at each fiscal quarter end, and

Charge Coverage Ratio not less than 1.25 to 1.0 as of each fiscal quarter end, determined on a trailing 4-quarter basis.

Aggregate contractual

maturities of debt in future fiscal years are as follows:

Company was in compliance with all covenants under the Wells Fargo Loan Agreement as of October 30, 2020.

6- Contingencies and Commitments:

Company leases warehouse and/or office facilities throughout the United States and Canada through month-to-month rental agreements.

In the case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy

election to not recognize lease assets and liabilities due to their underlying nature.

Company leases three long-haul trucks received during fiscal 2019.

Six-year leases for semi-trucks expire in 2025.

Company leases warehouse and/or office facilities throughout the United States through month-to-month rental agreements.

case of month-to-month lease or rental agreements with terms of 12 months or less, the Company made an accounting policy election

to not recognize lease assets and liabilities and record them on a straight-line basis over the lease term.

For further information

regarding our lease accounting policy, please refer to Note 1 –

Summary of Significant Accounting Policies, Leases.

Company leases three long-haul trucks received during fiscal year 2019.

The six-year leases for these trucks expire in 2025.

of equipment under capital lease was $71 in 2020.

following is a schedule by years of future minimum lease payments for transportation leases:

The Company leased one long-haul truck for $40 received during fiscal

year 2020, and that lease term is two years.

Company performed a detailed analysis and determined that the only indication of a long-term lease was Hogshed Ventures, LLC.

A right-of-use asset and corresponding liability for warehouse storage space was recorded for $1,091 for Hogshed

Ventures, LLC for 40th Street as of October 30, 2020.

lease this space under a non-cancelable operating lease.

This lease does not have significant rent escalation holidays, concessions,

leasehold improvement incentives or other build-out clauses.

Further this lease does not contain contingent rent provisions.

lease terminates on June 30, 2023.

This lease includes both lease (e.g., fixed rent) and non-lease components (e.g., real estate

taxes, insurance, common-area and other maintenance costs).

The non-lease components are deemed to be executory costs and are

included in the minimum lease payments used to determine the present value of the operating lease obligation and related right-of-use

lease does not provide an implicit rate and we estimated our incremental interest rate to be approximately 1.6%.

We used our estimated

incremental borrowing rate and other information available at the lease commencement date in determining the present value of

the lease payments.

following is a schedule by years of future minimum lease payments for transportation leases and right-of-use assets:

Total minimum lease payments(a)

3 unchanged sentences

Minimum payments exclude contingent rentals based on actual mileage and adjustments of rental payments based on the Consumer Price

Amount necessary to reduce net minimum lease payments to present value calculated at the Entity’s incremental borrowing

Amount necessary to reduce net minimum lease payments to present value calculated at the Company’s incremental borrowing

rate at the inception of the leases.

Reflected in the Note 2, as current and noncurrent obligations under capital leases of $95 and $360, respectively.

Reflected in Note 2, as current and noncurrent obligations under capital leases of $144 and $289, respectively and right-of-use

assets of $372 and $719, respectively.

7 - Segment Information:

6 unchanged sentences

are allocated to each operating segment based on revenues and/or actual usage.

following segment information is for the fiscal years ended November 1, 2019 (52 weeks) and November 2, 2018 (52 weeks):

of products sold

loss on sale of property, plant and equipment

following segment information is for the fiscal years ended October 30, 2020 (52 weeks) and November 1, 2019 (52 weeks):

Segment Information

Cost of products sold

(Gain) on sale of property, plant and equipment

Income before taxes

Additions to PP&E

of products sold

on sale of property, plant and equipment

Segment Information

Cost of products sold

(Gain) loss on sale of property, plant and equipment

Income before taxes

Additions to PP&E

following information further disaggregates our sales to customers by major distribution channel and customer type for the fiscal

year ended November 1, 2019.

years ended October 30, 2020 and November 1, 2019, respectively.

Distribution Channel

Foodservice (b)

Direct store delivery

Direct customer warehouse

Total Snack Food Products

Total Frozen Food Products

Total Net Sales

Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers.

Includes sales to foodservice distributors, restaurant operators, hotel chains and noncommercial foodservice establishments such

as schools, convenience stores, healthcare facilities and the military.

store delivery

2 unchanged sentences

Frozen Food Products

Total Net Sales

Includes sales to food retailers, such as grocery retailers, warehouse club stores, and internet-based retailers.

4 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures