Note 10 - Unconsolidated Affiliated Companies

12 Months Ended

Nov. 30, 2013

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments and Joint Ventures Disclosure [Text Block]

10. Unconsolidated Affiliated Companies

Zenith Freight Lines, LLC

We own 49% of Zenith Freight Lines, LLC, (“Zenith”) which provides domestic transportation and warehousing services primarily to furniture manufacturers and distributors and also provides home delivery services to furniture retailers. We have contracted with Zenith to provide for substantially all of our domestic freight, transportation and warehousing needs for the wholesale business. In addition, Zenith provides home delivery services for several of our Company-owned retail stores. Our investment in Zenith was $7,254 at November 30, 2013 and $6,484 at November 24, 2012 and is recorded in other long-term assets. We paid Zenith approximately $29,313, $25,317 and $23,665, for freight expense and logistical services in fiscal 2013, 2012, and 2011, respectively. At November 30, 2013 and November 24, 2012, we owed Zenith $2,580 and $2,547, respectively, for services rendered to us. We believe the transactions with Zenith are at current market rates. We recorded the following earnings in income from unconsolidated affiliated companies, net in our consolidated statements of income:

	2013		2012		2011
Earnings recognized	$	770	$	347	$	8

International Home Furnishings Center

On May 2, 2011 we sold our 46.9% interest in International Home Furnishings Center, Inc. (“IHFC”) to International Market Centers, L.P. (“IMC”).  Consideration received, the balance of our investment in IHFC at the time of sale, and the resulting gain from the sale are as follows:

Gain on sale of affiliate:
Consideration received:
Cash	$	69,152
Tax escrow (1)		1,413
Indemnification escrow (2)		4,695
Investment in IMC (3)		1,000
Total consideration received	$	76,260
Investment in IHFC:
Distributions in excess of affiliate earnings		9,282
Gain on sale of affiliate	$	85,542

(1)	These funds were released to us during the first quarter of fiscal 2012.
(2)	$2,348 of this escrow was released to us during the first quarter of fiscal 2013. The remaining balance is included in other current assets in the accompanying consolidated balance sheet at November 30, 2013.
(3)	Included in other assets in the accompanying consolidated balance sheets at November 30, 2013 and November 24, 2012.

$4,695 of proceeds was placed in escrow to indemnify the purchaser with respect to various contingencies.  On December 19, 2012, we received $2,348 for the release of half of this escrow, with the remainder, provided it is not used for contingencies, being due for release to us during the third quarter of fiscal 2014. Currently, we have no reason to believe that any obligations will arise out of such contingencies and therefore expect that the escrowed funds, along with earnings thereon, will be released to us in their entirety as scheduled.  Also in connection with the sale, we acquired a minority equity stake in IMC in exchange for $1,000.  IMC is majority owned by funds managed by Bain Capital Partners and a subsidiary of certain investment funds managed by Oaktree Capital Management, L.P. Our investment in IMC is accounted for using the cost method as we do not have significant influence over IMC.

IHFC owned and leased out floor space in a showroom facility in High Point, North Carolina. Prior to the sale of our investment in IHFC, we accounted for the investment using the equity method since we did not maintain operating control of IHFC. During fiscal 2011 we recorded income and received dividends from IHFC prior to divestiture of $1,832 and $3,756, respectively.

Summarized financial information for IHFC for 2011 is as follows:

	2011*
Revenues	19,955
Net income	3,470

*	No balance sheet information is reported as of November 26, 2011 as we no
	longer have any ownership interest in IHFC, and IHFC no longer exists as a stand-alone legal entity.
	Revenues and net income are reported for the five month period ended May 2, 2011.

The complete financial statements of IHFC for the period from November 1, 2010 through May 2, 2011 are included in our annual report on Form 10-K.