Operating Segment Information

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

Operating Segment Information

Operating Segment Information

Management views the Corporation as being in two operating segments:  office furniture and hearth products, with the former being the principal segment.  The office furniture segment manufactures and markets a broad line of metal and wood commercial and home office furniture which includes storage products, desks, credenzas, chairs, tables, bookcases, freestanding office partitions and panel systems and other related products.  The hearth products segment manufactures and markets a broad line of gas, electric, wood and biomass burning fireplaces, inserts, stoves, facings and accessories, principally for the home.

For purposes of segment reporting, intercompany sales transfers between segments are not material, and operating profit is income before income taxes exclusive of certain unallocated corporate expenses.  These unallocated corporate expenses include the net costs of the Corporation’s corporate operations, interest income and interest expense.  Management views interest income and expense as corporate financing costs and not as an operating segment cost.  In addition, management applies an effective income tax rate to its consolidated income before income taxes so income taxes are not reported or viewed internally on a segment basis.  Identifiable assets by segment are those assets applicable to the respective industry segments.  Corporate assets consist principally of cash and cash equivalents, short-term investments, long-term investments and corporate office real estate and related equipment.

No geographic information for revenues from external customers or for long-lived assets is disclosed since the Corporation’s primary market and capital investments are concentrated in the United States.

Reportable segment data reconciled to the consolidated financial statements for the years ended 2011, 2010, and 2009, is as follows for continuing operations:

(In thousands)	2011			2010			2009
Net sales:
Office furniture	$	1,528,050		$	1,404,923		$	1,344,832
Hearth products	305,400			281,805			278,495
	$	1,833,450		$	1,686,728		$	1,623,327
Operating profit:
Office furniture (a)	$	99,626		$	87,559		$	52,542
Hearth products (b)	14,752			2,915			(14,744		)
Total operating profit	114,378			90,474			37,798
Unallocated corporate expenses	(44,219		)	(43,996		)	(40,881		)
Income (loss) before income taxes	$	70,159		$	46,478		$	(3,083	)
Depreciation and amortization expense:
Office furniture	$	36,109		$	44,717		$	52,137
Hearth products	7,574			11,474			19,041
General corporate	2,604			2,439			3,689
	$	46,287		$	58,630		$	74,867
Capital expenditures:
Office furniture	$	24,061		$	20,928		$	13,482
Hearth products	2,179			2,423			3,484
General corporate	4,903			3,371			588
	$	31,143		$	26,722		$	17,554
Identifiable assets:
Office furniture	$	671,334		$	588,540		$	579,187
Hearth products	259,142			267,125			291,518
General corporate	123,782			142,215			123,621
	$	1,054,258		$	997,880		$	994,326

(a) Included in operating profit for the office furniture segment are pretax charges of $2.8 million, $4.1 million and $34.9 million, for closing of facilities and impairment charges in 2011, 2010 and 2009, respectively.

(b) Included in operating profit for the hearth products segment are pretax charges of $0.4 million, $5.4 million and $5.5 million for closing facilities in 2011, 2010 and 2009, respectively.