Note 20 - Segment Information

12 Months Ended

Nov. 28, 2015

Notes to Financial Statements

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 (Company-owned and licensee-owned stores 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 s tores. Our retail segment consists of Company-owned stores and includes the revenues, expenses, assets and liabilities and capital expenditures directly related to these stores.

● Logistical services . With our acquisition of Zenith on February 2, 2015, we created the logistical services operating segment which reflects the operations of Zenith. In addition to providing shipping, delivery and warehousing services for the Company, Zenith also provides similar services to other customers, primarily in the furniture industry. Revenue from the performance of these services to other customers is included in logistics revenue in our condensed consolidated statement of income. Zenith’s operating costs are included in selling, general and administrative expenses and total $73,722 for the year ended November 28, 2015 since the date of acquisition. Amounts charged by Zenith to the Company for logistical services prior to the date of acquisition are included in selling, general and administrative expenses, and our equity in the earnings of Zenith prior to the date of acquisition is included in other loss, net, in the accompanying statements of income.

Inter-company sales elimination represents the elimination of wholesale sales to our Company-owned stores and the elimination of Zenith logistics revenue from our wholesale and retail segments. 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, and the elimination of shipping and handling charges from Zenith for services provided to our wholesale and retail operations.

Prior to the beginning of fiscal 2015, our former investments and real estate segment included our short-term investments, our holdings of retail real estate previously leased as licensee stores, and our former equity investment in Zenith prior to acquisition. This segment has been eliminated and the assets formerly reported therein are now considered to be part of our wholesale segment. The earnings and costs associated with these assets, including our equity in the income of Zenith prior to the date of acquisition, will continue to be included in other loss, net, in our condensed consolidated statements of income.

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

	2015			2014			2013
Net Sales
Wholesale	$	252,180		$	223,993		$	215,451
Retail		249,379			216,631			199,380
Logistical services		77,250			-			-
Inter-company eliminations:
Furniture and accessories		(114,154	)		(99,886	)		(93,545	)
Logistical services		(33,728	)		-			-
Consolidated	$	430,927		$	340,738		$	321,286
Income (loss) from Operations
Wholesale	$	15,618		$	14,120		$	10,883
Retail		6,170			(528	)		(1,452	)
Logistical services		3,528			-			-
Inter-company elimination		1,647			1,539			574
Lease exit costs		(419	)		-			-
Asset impairment charges		(106	)		-			-
Management restructuring costs		(449	)		-			-
Consolidated income from operations	$	25,989		$	15,131		$	10,005
Depreciation and Amortization
Wholesale	$	2,075		$	1,972		$	1,826
Retail		5,428			5,344			4,372
Logistical services		2,634			-			-
Consolidated	$	10,137		$	7,316		$	6,198
Capital Expenditures
Wholesale	$	4,898		$	4,527		$	3,839
Retail		7,077			13,836			10,846
Logistical services		1,999			-			-
Consolidated	$	13,974		$	18,363		$	14,685
Identifiable Assets
Wholesale	$	146,878		$	154,319		$	148,518
Retail		88,878			86,471			77,331
Logistical services		46,787			-			-
Consolidated	$	282,543		$	240,746		$	225,849

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

	2015			2014			2013
Wood		37	%		39	%		41	%
Upholstery		63	%		61	%		59	%
		100	%		100	%		100	%