Note 12 - Segment Information

3 Months Ended

Feb. 25, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

1

2

. 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 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. Our wholesale segment also includes our holdings of short-term investments and retail real estate previously leased as licensee stores. The earnings and costs associated with these assets are included in other loss, net, in our condensed consolidated statements of income.

● 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 . Our logistical services operating segment 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 logistical services revenue in our condensed consolidated statement of income. Zenith’s total operating costs, including those associated with providing logistical services to the Company as well as to third -party customers, are included in selling, general and administrative expenses and were $22,560 and $23,934 for the quarters ended February 25, 2017 and February 27, 2016, respectively.

Inter-company net 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.

The following table presents our segment information:

	Quarter Ended
	February 25, 2017			February 27, 2016
Sales Revenue
Wholesale	$	61,975		$	59,576
Retail - Company-owned stores		61,593			61,595
Logistical services		22,334			24,679
Inter-company eliminations:
Furniture and accessories		(29,870	)		(28,769	)
Logistical services		(10,140	)		(10,208	)
Consolidated	$	105,892		$	106,873
Income (loss) from Operations
Wholesale	$	5,893		$	4,398
Retail - Company-owned stores		(1,343	)		316
Logistical services		(226	)		744
Inter-company elimination		340			333
Consolidated	$	4,664		$	5,791
Depreciation and Amortization
Wholesale	$	644		$	456
Retail - Company-owned stores		1,472			1,531
Logistical services		1,235			830
Consolidated	$	3,351		$	2,817
Capital Expenditures
Wholesale	$	1,627		$	1,537
Retail - Company-owned stores		3,703			2,021
Logistical services		280			5,010
Consolidated	$	5,610		$	8,568

	As of		As of
Identifiable Assets	February 25, 2017		November 26, 2016
Wholesale	$	129,200	$	139,477
Retail - Company-owned stores		92,447		88,855
Logistical services		48,002		49,935
Consolidated	$	269,649	$	278,267