Note 18 - Segment Information

9 Months Ended

Aug. 25, 2012

Segment Reporting Disclosure [Text Block]

18. 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 (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. We eliminate the sales between our wholesale and retail segments as well as the imbedded profit in the retail inventory for the consolidated presentation in our financial statements.

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 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 income and retained earnings. Our entire investment in IHFC was sold during the third 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 Months Ended
	August 25, 2012			August 27, 2011			August 25, 2012			August 27, 2011
Net Sales
Wholesale	$	44,805		$	41,905		$	133,355		$	133,626
Retail		41,178			33,609			122,800			108,598
Inter-company elimination		(21,545	)		(16,097	)		(63,295	)		(52,282	)
Consolidated	$	64,438		$	59,417		$	192,860		$	189,942
Income (loss) from Operations
Wholesale	$	1,711		$	1,540		$	5,575		$	(6,504	)
Retail		(1,503	)		(1,775	)		(2,437	)		(3,911	)
Inter-company elimination		558			129			497			942
Licensee debt cancellation charge		-			-			-			(6,447	)
Restructuring and asset impairment charges		-			(123	)		(711	)		(2,082	)
Lease exit costs		-			-			(359	)		(3,728	)
Consolidated	$	766		$	(229	)	$	2,565		$	(21,730	)
Depreciation and Amortization
Wholesale	$	259		$	271		$	825		$	959
Retail		929			832			2,700			2,483
Investments/real estate		128			140			406			708
Consolidated	$	1,316		$	1,243		$	3,931		$	4,150
Capital Expenditures
Wholesale	$	1,268		$	361		$	2,303		$	493
Retail		1,238			1,134			4,545			1,966
Investments & real estate		-			-			10
Consolidated	$	2,506		$	1,495		$	6,858		$	2,459

Identifiable Assets	As of August 25, 2012		As of November 26, 2011
Wholesale	$	140,765	$	142,361
Retail		64,896		60,811
Investments/real estate		16,078		20,002
Consolidated	$	221,739	$	223,174