Represents reserves of acquired business at date of acquisition. Selected Financial Data 14 Item 7. We were founded in 1902 and incorporated under the laws of Virginia in 1930. These sales representatives are compensated based on a standard commission rate. Over 75% of the products we currently sell are manufactured in the United States. &# Our strategy is to distribute this brand outside of our BHF store network only. We also own copyrights that are important in the conduct of our business. &# In January 2013, he was promoted to Senior Vice President and Chief Financial Officer. He has served as President of Zenith since its formation in 1999. &# xa0; 12 PART II ITEM 5. One new licensee store was opened in Thornton, Colorado. &# 2) Represents the elimination of logistical services billed to our wholesale segment. ( Accordingly, we recognized a charge of $835 during the year ended November 30, 2019. &# Actual results could differ from these estimates and assumptions. We offer payment terms varying from 30 to 60 days for wholesale customers. We believe that our audits provide a reasonable basis for our opinion. &# All significant intercompany balances and transactions are eliminated in consolidation. All of these licensees operate as BHF stores and are furniture retailers. We have recorded reserves for potential exposures related to these licensees. Sales commissions at wholesale are accrued upon the shipment of goods. Investments are managed within established guidelines to mitigate risks. This property and equipment is stated at cost less accumulated depreciation. Buildings and improvements are generally depreciated over a period of 10 to 39 years. Machinery and equipment are generally depreciated over a period of 5 to 10 years. ROU assets under operating leases are written down to their estimated fair value. These insurance programs are subject to various stop-loss limitations. We have adopted this standard using the modified retrospective approach. xa0; In August 2018, the FASB issued Accounting Standards Update No. Early adoption is permitted, including adoption in any interim period. The need for these reserves is primarily driven by the normal product life cycle. These wholesale reserves primarily represent design and style obsolescence. Funding for the remaining cash flows is expected to be provided through operations. xa0; PART III ITEM 10. 2) Represents reserves of acquired business at date of acquisition. &#
