Note 19 - Segment Information

12 Months Ended

Nov. 26, 2022

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

19. 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 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. The retail segment also includes the operations and net assets of Noa Home since the acquisition on September 2, 2022.

Inter-company 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 18).

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

	2022			2021			2020
Sales Revenue
Wholesale sales of furniture and accessories	$	324,569		$	295,329		$	221,075
Less: Sales to retail segment		(125,889	)		(112,270	)		(95,347	)
Wholesale sales to external customers		198,680			183,059			125,728
Retail sales of furniture and accessories		286,921			247,827			211,944
Consolidated net sales of furniture and accessories	$	485,601		$	430,886		$	337,672
Income (loss) from Operations
Wholesale	$	9,286		$	17,490		$	4,587
Retail		21,508			7,044			(9,497	)
Inter-company elimination		(524	)		(277	)		2,610
Asset impairment charges		-			-			(12,184	)
Goodwill impairment charge		-			-			(1,971	)
Litigation expense		-			-			(1,050	)
Gain on sale of real estate		4,595			-			-
Consolidated income from operations	$	34,865		$	24,257		$	(17,505	)
Depreciation and Amortization
Wholesale	$	4,293		$	3,386		$	3,125
Retail		5,750			6,580			6,578
Discontinued operations		1,266			4,631			3,777
Consolidated	$	11,309		$	14,597		$	13,480
Capital Expenditures
Wholesale	$	10,748		$	5,943		$	2,434
Retail		10,548			299			695
Consolidated	$	21,296		$	6,242		$	3,129
Identifiable Assets
Wholesale	$	215,748		$	196,910		$	180,235
Retail		190,525			160,929			169,105
Discontinued operations		-			63,821			53,209
Consolidated	$	406,273		$	421,660		$	402,549

See Note 20 for disaggregated revenue information regarding sales of furniture and accessories by product type for the wholesale and retail segments.