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Note 20 - Segment Information
 12 Months Ended
Nov. 25, 2017
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
2
0.
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. 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 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
.
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
$94,616
and
$92,196
for the years ended
November 25, 2017
and
November 26, 2016,
respectively, and
$73,722
from the date of acquisition through
November 28, 2015.
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.
 
The following table presents segment information for each of the last
three
fiscal years:
 
   
2017
    
2016
    
2015
  
Net Sales
  
 
 
 
  
 
 
 
  
 
 
 
Wholesale
   $
249,193
     $
240,346
     $
252,180
  
Retail
    
268,264
      
254,667
      
249,379
  
Logistical services
    
97,578
      
95,707
      
77,250
  
Inter-company eliminations:
                        
Furniture and accessories
    
(119,360
 )    
(117,817
 )    
(114,154
 )
Logistical services
    
(43,172
 )    
(40,865
 )    
(33,728
 )
Consolidated
   $
452,503
     $
432,038
     $
430,927
  
                         
Income (loss) from Operations
  
 
 
 
  
 
 
 
  
 
 
 
Wholesale
   $
19,121
     $
18,672
     $
15,618
  
Retail
    
3,490
      
4,333
      
6,170
  
Logistical services
    
2,962
      
3,511
      
3,528
  
Inter-company elimination
    
1,445
      
1,677
      
1,647
  
Lease exit costs
    
-
      
-
      
(419
 )
Asset impairment charges
    
-
      
-
      
(106
 )
Management restructuring costs
    
-
      
-
      
(449
 )
Consolidated income from operations
   $
27,018
     $
28,193
     $
25,989
  
                         
Depreciation and Amortization
  
 
 
 
  
 
 
 
  
 
 
 
Wholesale
   $
2,648
     $
2,053
     $
2,075
  
Retail
    
6,011
      
5,992
      
5,428
  
Logistical services
    
4,653
      
4,204
      
2,634
  
Consolidated
   $
13,312
     $
12,249
     $
10,137
  
                         
Capital Expenditures
  
 
 
 
  
 
 
 
  
 
 
 
Wholesale
   $
4,875
     $
7,232
     $
4,898
  
Retail
    
8,086
      
5,115
      
7,077
  
Logistical services
    
2,539
      
9,154
      
1,999
  
Consolidated
   $
15,500
     $
21,501
     $
13,974
  
                         
Identifiable Assets
  
 
 
 
  
 
 
 
  
 
 
 
Wholesale
   $
152,181
     $
139,477
     $
146,878
  
Retail
    
89,271
      
88,855
      
88,878
  
Logistical services
    
52,296
      
49,935
      
46,787
  
Consolidated
   $
293,748
     $
278,267
     $
282,543
  
 
A breakdown of wholesale sales by product category for each of the last
three
fiscal years is provided below:
 
 
   
2017
    
2016
    
2015
  
                         
Wood
    
35
 %    
37
 %    
37
 %
Upholstery
    
65
 %    
63
 %    
63
 %
     
100
 %    
100
 %    
100
 %