Note 17 - Segment Information

9 Months Ended

Aug. 27, 2011

Segment Reporting Disclosure [Text Block]

17. Segment Information

We have strategically aligned our business into three reportable segments: Wholesale, Retail and Investments/Real Estate. The wholesale home furnishings segment is involved principally in the design, manufacture, sourcing, sale and distribution of furniture products to a network of Bassett stores (independently-owned stores, Company-owned retail stores and partnership licensees) and independent furniture retailers. Our wholesale segment includes our wood and upholstery operations as well as all corporate selling, general and administrative expenses.

Our retail segment consists of Company-owned stores. Our retail segment includes the revenues, expenses, assets and liabilities (including real estate) and capital expenditures directly related to these stores.

Our investments/real estate segment consists of our investments, distributions in excess of affiliate earnings (IHFC) and retail real estate related to licensee stores. Although this segment does not have operating earnings, income or loss from the segment is included in other income (loss), net, in our condensed consolidated statements of operations and retained earnings. Our equity investment in IHFC is not included in the identifiable assets of this segment since it had a negative book value at November 27, 2010 and was therefore included in the long-term liabilities section of our condensed consolidated balance sheet. Our entire investment in IHFC was sold during the second quarter of 2011. See Note 7 for further discussion of IHFC.

Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores. Inter-company income elimination represents the embedded wholesale profit in the Company-owned store inventory that has not been realized. These profits will be recorded when merchandise is delivered to the end retail consumer.

The following table presents our segment information:

	Quarter Ended						Nine Month Ended
	August 27, 2011			August 28, 2010			August 27, 2011			August 28, 2010
Net Sales
Wholesale	$	41,905		$	43,805		$	133,626		$	126,933
Retail		33,609			29,896			108,598			87,399
Inter-company elimination		(16,097	)		(15,174	)		(52,282	)		(45,069	)
Consolidated	$	59,417		$	58,527		$	189,942		$	169,263
Income (loss) from Operations
Wholesale	$	1,540		$	385		$	(6,504	)	$	873
Retail		(1,775	)		(2,924	)		(3,911	)		(6,524	)
Inter-company elimination		129			228			942			161
Licensee debt cancellation charge		-			-			(6,447	)		-
Restructuring and asset impairment charges		(123	)		-			(2,082	)		-
Lease exit costs		-			-			(3,728	)		-
Consolidated	$	(229	)	$	(2,311	)	$	(21,730	)	$	(5,490	)
Depreciation and Amortization
Wholesale	$	271		$	372		$	959		$	1,301
Retail		832			807			2,483			2,270
Investments/real estate		140			286			708			853
Consolidated	$	1,243		$	1,465		$	4,150		$	4,424
Capital Expenditures
Wholesale	$	361		$	145		$	493		$	395
Retail		1,134			157			1,966			1,410
Consolidated	$	1,495		$	302		$	2,459		$	1,805

	As of		As of
Identifiable Assets	August 27, 2011		November 27, 2010
Wholesale	$	145,591	$	95,957
Retail		57,748		58,736
Investments/real estate		20,377		42,624
Consolidated	$	223,716	$	197,317