Note 20 - Segment Information

12 Months Ended

Nov. 24, 2012

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 26, 2011 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 includes 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 inter-company income elimination also includes rent paid by our retail stores occupying Company-owned real estate.

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

	2012			2011			2010
Net Sales
Wholesale	$	185,187		$	177,372		$	176,255
Retail		171,633			147,961			122,241
Inter-company elimination		(87,148	)		(72,125	)		(63,242	)
Consolidated	$	269,672		$	253,208		$	235,254
Income (loss) from Operations
Wholesale	$	7,500		$	(4,394	)	$	2,431
Retail		(2,067	)		(4,495	)		(7,387	)
Inter-company elimination		717			942			269
Restructuring and asset impairment charges
Wholesale		(588	)		(1,311	)		-
Retail		(123	)		(1,189	)		-
Licensee debt cancellation charges		-			(6,447	)		-
Lease exit costs		(359	)		(3,728	)		-
Consolidated income (loss) from operations	$	5,080		$	(20,622	)	$	(4,687	)
Depreciation and Amortization
Wholesale	$	1,171		$	1,246		$	1,670
Retail		3,760			3,421			3,095
Investments/real estate		542			847			1,201
Consolidated	$	5,473		$	5,514		$	5,966
Capital Expenditures
Wholesale	$	3,092		$	690		$	515
Retail		5,898			3,478			1,498
Investments/real estate		10			-			-
Consolidated	$	9,000		$	4,168		$	2,013
Identifiable Assets
Wholesale	$	145,861		$	142,361		$	95,957
Retail		68,583			60,811			58,736
Investments/real estate		12,736			20,002			42,624
Consolidated	$	227,180		$	223,174		$	197,317

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

	2012		2011		2010
Wood		43%		44%		44%
Upholstery		57%		56%		56%
		100%		100%		100%