Note 19 - Segment Information

12 Months Ended

Nov. 25, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

19. Segment Information

As of the beginning of fiscal 2023 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, which includes Lane Venture.

● 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.

● Corporate and other – Corporate and other includes the shared costs of corporate functions such as treasury and finance, information technology, accounting, human resources, legal and others, including certain product development and marketing functions benefitting both wholesale and retail operations. In addition to property and equipment and various other assets associated with the shared corporate functions, the identifiable assets of Corporate and other include substantially all of our cash and our investments in CDs. We consider our corporate functions to be other business activities and have aggregated them with our other insignificant operating segment, the recently acquired Noa Home (see Note 3).

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.

Prior to the beginning of fiscal 2023, the functions included in Corporate and other were included in our wholesale reportable segment, and Noa Home was included in our retail reportable segment for the fourth quarter of fiscal 2022 following its acquisition on September 2, 2022. We believe that the new alignment of our reporting segments provides our chief operating decision maker with clearer information with which to assess the operating results of our wholesale segment. Noa Home does not meet the requirements to be a separate reportable segment as it is below the thresholds of the revenue, income and asset tests. The segment information presented below for fiscal 2022 and 2021 has been restated to reflect the new alignment of our reportable segments.

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 operations (see Note 18).

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

	2023			2022			2021
Sales Revenue
Wholesale sales of furniture and accessories	$	248,911		$	324,569		$	295,329
Less: Sales to retail segment		(103,519	)		(125,889	)		(112,270	)
Wholesale sales to external customers		145,392			198,680			183,059
Retail sales of furniture and accessories		235,940			285,119			247,827
Corporate & Other		8,804			1,802			-
Consolidated net sales of furniture and accessories	$	390,136		$	485,601		$	430,886
Income (loss) from Continuing Operations
Wholesale	$	30,699		$	41,979		$	43,946
Retail		(536	)		19,352			3,924
Net expenses - Corporate and other		(29,926	)		(30,997	)		(24,829	)
Inter-company elimination		1,024			(64	)		1,216
Gain on revaluation of contingent consideration		1,013			-			-
Goodwill impairment charge		(5,409	)		-			-
Gain on sale of real estate		-			4,595			-
Consolidated income (loss) from continuing operations	$	(3,135	)	$	34,865		$	24,257
Depreciation and Amortization
Wholesale	$	2,455		$	2,410		$	2,112
Retail		5,502			5,750			6,580
Corporate and other		2,184			1,883			1,274
Discontinued operations		-			1,266			4,631
Consolidated	$	10,141		$	11,309		$	14,597
Capital Expenditures
Wholesale	$	2,295		$	5,509		$	4,177
Retail		9,877			10,549			299
Corporate and other		5,317			5,238			1,766
Discontinued operations		-			-			4,508
Consolidated	$	17,489		$	21,296		$	10,750
Identifiable Assets
Wholesale	$	99,004		$	125,433		$	123,469
Retail		166,604			162,222			155,398
Corporate and Other		104,816			118,618			78,972
Discontinued operations		-			-			63,821
Consolidated	$	370,424		$	406,273		$	421,660

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