Note 20 - Segment Information

12 Months Ended

Nov. 26, 2011

Segment Reporting Disclosure [Text Block]

20. Segment Information

We have strategically aligned our business into three reportable segments as defined in ASC 280, Segment Reporting, and as described below:

· Wholesale. 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 (licensee-owned stores and Company-owned retail stores) and independent furniture retailers. Our wholesale segment includes our wood and upholstery operations as well as all corporate selling, general and administrative expenses, including those corporate expenses related to both Company- and licensee-owned stores.

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

· Investments and Real Estate. Our investments/real estate segment consists of our marketable securities, 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 consolidated statements of operations. 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 consolidated balance sheet. Our entire investment in IHFC was sold during the second quarter of 2011. See Note 11 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 retail consumer.

The following table presents segment information for each of the last three fiscal years:

	2011			2010			2009
Net Sales
Wholesale	$	177,372		$	176,255		$	179,534
Retail		147,961			122,241			105,378
Inter-company elimination		(72,125	)		(63,242	)		(52,190	)
Consolidated	$	253,208		$	235,254		$	232,722
Income (loss) from Operations
Wholesale	$	(4,394	)	$	2,431		$	(9,100	)
Retail		(4,495	)		(7,387	)		(8,131	)
Inter-company elimination		942			269			1,077
Income from CDSOA		765			488			1,627
Restructuring, asset impairment charges and unusual gains, net
Wholesale		(1,311	)		-			(2,028	)
Retail		(1,189	)		-			(959	)
Licensee debt cancellation charges		(6,447	)		-			-
Lease exit costs		(3,728	)		-			(2,434	)
Consolidated loss from operations	$	(19,857	)	$	(4,199	)	$	(19,948	)
Depreciation and Amortization
Wholesale	$	1,246		$	1,670		$	2,633
Retail		3,421			3,095			2,730
Investments/real estate		847			1,201			1,241
Consolidated	$	5,514		$	5,966		$	6,604
Capital Expenditures
Wholesale	$	690		$	515		$	486
Retail		3,478			1,498			608
Investments/real estate		-			-			2
Consolidated	$	4,168		$	2,013		$	1,096
Identifiable Assets
Wholesale	$	142,361		$	95,957		$	119,475
Retail		60,811			58,736			53,030
Investments/real estate		20,002			42,624			43,724
Consolidated	$	223,174		$	197,317		$	216,229

A breakdown of wholesale sales by product category for each of the last three fiscal years is provided below:

	2011			2010			2009
Wood		44	%		44	%		50	%
Upholstery		56	%		56	%		50	%
		100	%		100	%		100	%