Note 17 - Segment Information

12 Months Ended

Nov. 27, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

17. 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 operations.

● Retail – Company-owned stores. Our retail segment consists of Company-owned stores and includes the revenues, expenses, assets and liabilities and capital expenditures directly related to these stores and the Company-owned distribution network utilized to deliver products to our retail customers.

● Logistical services. With our acquisition of Zenith in 2015, we created the logistical services operating segment which reflects the operations of Zenith. In addition to providing shipping 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 consolidated statement of operations. See Note 20, Subsequent Event, regarding our entry into an agreement to sell substantially all of the assets of Zenith.

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 segment. 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 operations.

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

	2021			2020			2019
Sales Revenue
Wholesale sales of furniture and accessories	$	295,329		$	221,075		$	261,105
Less: Sales to retail segment		(112,270	)		(95,347	)		(125,933	)
Wholesale sales to external customers		183,059			125,728			135,172
Retail sales of furniture and accessories		247,827			211,944			268,693
Consolidated net sales of furniture and accessories		430,886			337,672			403,865
Logistical services revenue		86,977			75,158			80,074
Less: Services to wholesale segment		(31,329	)		(26,967	)		(31,852	)
Logistical services to external customers		55,648			48,191			48,222
Total sales revenue	$	486,534		$	385,863		$	452,087
Income (loss) from Operations
Wholesale	$	17,490		$	4,587		$	11,456
Retail		7,044			(9,497	)		(7,009	)
Logistical services		1,743			1,245			1,855
Inter-company elimination		(278	)		2,647			1,144
Asset impairment charges		-			(12,184	)		(4,431	)
Goodwill impairment charge		-			(1,971	)		(1,926	)
Early retirement program		-			-			(835	)
Litigation expense		-			(1,050	)		(700	)
Lease exit costs		-			-			(149	)
Consolidated income from operations	$	25,999		$	(16,223	)	$	(595	)
Depreciation and Amortization
Wholesale	$	3,386		$	3,125		$	3,178
Retail		6,580			6,578			6,303
Logistical services		4,631			3,777			4,019
Consolidated	$	14,597		$	13,480		$	13,500
Capital Expenditures
Wholesale	$	5,943		$	2,434		$	5,650
Retail		299			695			8,473
Logistical services		4,508			2,900			3,627
Consolidated	$	10,750		$	6,029		$	17,750
Identifiable Assets
Wholesale	$	197,543		$	176,243		$	144,392
Retail		160,929			169,105			91,997
Logistical services		63,188			57,201			39,377
Consolidated	$	421,660		$	402,549		$	275,766

See Note 18 for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.