Note 13 - Segment Information

3 Months Ended

Mar. 02, 2013

Segment Reporting Disclosure [Text Block]

13. 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 (Company-owned and licensee-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 and real estate segment consists of our holdings of retail real estate leased or previously leased as licensee stores and our equity investment in Zenith.  We also hold an investment in Fortress, which we fully reserved during the first quarter of fiscal 2012. Although this segment does not have operating earnings, income from the segment is included in other loss, net, in our condensed consolidated statements of operations and retained earnings.

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

The following table presents our segment information:

	Quarter Ended
	March 2, 2013			February 25, 2012
Net Sales
Wholesale	$	53,960		$	42,611
Retail		49,957			38,816
Inter-company elimination		(24,068	)		(20,459	)
Consolidated	$	79,849		$	60,968
Income (loss) from Operations
Wholesale	$	3,001		$	1,831
Retail		(571	)		(999	)
Inter-company elimination		(66	)		(189	)
Restructuring and asset impairment charges		-			(236	)
Lease exit costs		-			(228	)
Consolidated	$	2,364		$	179
Depreciation and Amortization
Wholesale	$	341		$	281
Retail		967			896
Investments/real estate		126			139
Consolidated	$	1,434		$	1,316
Capital Expenditures
Wholesale	$	648		$	393
Retail		1,973			1,515
Investments & real estate		-			10
Consolidated	$	2,621		$	1,918

Identifiable Assets	As of March 2, 2013		As of November 24, 2012
Wholesale	$	141,337	$	145,861
Retail		73,040		68,583
Investments/real estate		12,610		12,736
Consolidated	$	226,987	$	227,180