Note 13 - Segment Information

6 Months Ended

May 28, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

13. Segment Information

We have strategically aligned our business into two 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, which include Lane Venture, 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 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.

Inter-company net sales elimination represents the elimination of wholesale sales to our Company-owned stores. 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.

Our former logistical services segment which represented the operations of Zenith is now presented as a discontinued operation in the accompanying condensed consolidated balances sheets and statements of income (see Note 12).

The following table presents our segment information:

	Quarter Ended						Six Months Ended
	May 28, 2022			May 29, 2021			May 28, 2022			May 29, 2021
Sales Revenue
Wholesale sales of furniture and accessories	$	87,501		$	76,034		$	170,986		$	146,298
Less: Sales to retail segment		(34,415	)		(28,520	)		(64,143	)		(57,524	)
Wholesale sales to external customers		53,086			47,514			106,843			88,774
Retail sales of furniture and accessories		75,620			62,483			139,727			122,878
Consolidated net sales of furniture and accessories	$	128,706		$	109,997		$	246,570		$	211,652
Income from Operations
Wholesale	$	3,434		$	5,359		$	6,819		$	10,156
Retail - Company-owned stores		7,875			1,652			11,225			2,746
Inter-company elimination		(297	)		74			(554	)		(255	)
Consolidated	$	11,012		$	7,085		$	17,490		$	12,647
Depreciation and Amortization
Wholesale	$	931		$	823		$	1,825		$	1,621
Retail - Company-owned stores		1,479			1,581			2,974			3,097
Consolidated	$	2,410		$	2,404		$	4,799		$	4,718
Capital Expenditures
Wholesale	$	9,578		$	1,409		$	11,905		$	2,166
Retail - Company-owned stores		717			119			733			137
Consolidated	$	10,295		$	1,528		$	12,638		$	2,303

	As of		As of
	May 28, 2022		November 27, 2021
Identifiable Assets
Wholesale	$	248,046	$	196,853
Retail - Company-owned stores		165,707		160,986
Discontinued Operations		-		63,821
Consolidated	$	413,753	$	421,660

See Note 14, Revenue Recognition, for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.