Reportable Segment Information

12 Months Ended

Dec. 31, 2016

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 2016, 2015, and 2014, is as follows for continuing operations:

(In thousands)	2016			2015			2014
Net sales:
Office furniture	$	1,703,885		$	1,777,804		$	1,739,049
Hearth products	499,604			526,615			483,646
	$	2,203,489		$	2,304,419		$	2,222,695
Operating profit:
Office furniture (a)	$	117,397		$	136,593		$	87,053
Hearth products (b)	69,960			78,162			77,066
Total operating profit	187,357			214,755			164,119
Unallocated corporate expenses	(58,446		)	(57,585		)	(59,188		)
Income (loss) before income taxes	$	128,911		$	157,170		$	104,931
Depreciation and amortization expense:
Office furniture	$	45,088		$	42,415		$	45,891
Hearth products	12,486			8,430			5,415
General corporate	11,373			6,719			5,416
	$	68,947		$	57,564		$	56,722
Capital expenditures (including capitalized software):
Office furniture	$	65,944		$	64,850		$	62,696
Hearth products	11,217			11,078			6,342
General corporate	42,423			39,038			43,675
	$	119,584		$	114,966		$	112,713
Identifiable assets:
Office furniture	$	749,145		$	739,915		$	724,293
Hearth products	340,494			341,813			341,315
General corporate	240,595			182,197			173,726
	$	1,330,234		$	1,263,925		$	1,239,334

(a) Included in operating profit for the office furniture segment are pretax charges of $10.9 million, $11.6 million and $38.2 million, for closing of facilities and impairment charges in 2016, 2015 and 2014, respectively.

(b) Included in operating profit for the hearth products segment are pretax charges of $5.5 million for closing a facility in 2016 and $0.9 million related to exiting a line of business in 2015.

The Corporation's net sales by product category were as follows for the years ended 2016, 2015 and 2014:

(in thousands)	2016		2015		2014
Systems and storage		$904,748		$1,140,369		$1,156,170
Seating	707,609		561,392		498,389
Other	91,528		76,043		84,490
Hearth products	499,604		526,615		483,646
		$2,203,489		$2,304,419		$2,222,695