Reportable Segment Information

12 Months Ended

Dec. 29, 2012

Segment Reporting [Abstract]

Reportable Segment Information

Reportable Segment Information

Management views the Corporation as being in two reportable segments based on industries:  office furniture and hearth products, with the former being the principal segment.  The aggregated 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 a reportable 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 2012, 2011, and 2010, is as follows for continuing operations:

(In thousands)	2012			2011			2010
Net sales:
Office furniture	$	1,687,302		$	1,528,050		$	1,404,923
Hearth products	316,701			305,400			281,805
	$	2,004,003		$	1,833,450		$	1,686,728
Operating profit:
Office furniture (a)	$	91,849		$	99,626		$	87,559
Hearth products (b)	26,477			14,752			2,915
Total operating profit	118,326			114,378			90,474
Unallocated corporate expenses	(40,722		)	(44,219		)	(43,996		)
Income (loss) before income taxes	$	77,604		$	70,159		$	46,478
Depreciation and amortization expense:
Office furniture	$	34,491		$	36,109		$	44,717
Hearth products	5,958			7,574			11,474
General corporate	2,911			2,604			2,439
	$	43,360		$	46,287		$	58,630
Capital expenditures (including capitalized software):
Office furniture	$	36,080		$	24,061		$	20,928
Hearth products	2,008			2,179			2,423
General corporate	22,182			4,903			3,371
	$	60,270		$	31,143		$	26,722
Identifiable assets:
Office furniture	$	700,665		$	671,334		$	588,540
Hearth products	254,835			259,142			267,125
General corporate	124,131			123,782			142,215
	$	1,079,631		$	1,054,258		$	997,880

(a) Included in operating profit for the office furniture segment are pretax charges of $1.9 million, $2.8 million and $4.1 million, for closing of facilities and impairment charges in 2012, 2011 and 2010, respectively.

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

The Corporation's net sales by product category were as follows for the years ended 2012, 2011 and 2010:

(in thousands)	2012	2011	2010
Systems and storage	1,126,272	1,072,629	997,346
Seating	452,923	399,264	361,543
Other	108,107	56,157	46,034
Hearth products	316,701	305,400	281,805
	2,004,003	1,833,450	1,686,728