Business Segment Information

3 Months Ended

Apr. 01, 2017

Segment Reporting [Abstract]

Business Segment Information

Business 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 business 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 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 Corporation's condensed consolidated financial statements for the three months ended April 1, 2017 and April 2, 2016, is as follows:

	Three Months Ended
(In thousands)	April 1, 2017			April 2, 2016
Net Sales:
Office furniture	$	359,981		$	387,339
Hearth products	117,686			113,698
	$	477,667		$	501,037
Operating Profit:
Office furniture	$	6,444		$	21,300
Hearth products	11,811			12,561
Total operating profit	18,255			33,861
Unallocated corporate expense	(11,296		)	(16,138		)
Income before income taxes	$	6,959		$	17,723
Depreciation & Amortization Expense:
Office furniture	$	12,885		$	10,693
Hearth products	3,488			2,656
General corporate	2,466			1,902
	$	18,839		$	15,251
Capital Expenditures (including capitalized software):
Office furniture	$	21,020		$	16,468
Hearth products	2,078			2,553
General corporate	9,678			8,436
	$	32,776		$	27,457
	As of			As of
(In thousands)	April 1, 2017			December 31, 2016
Identifiable Assets:
Office furniture	$	752,115		$	749,145
Hearth products	340,544			340,494
General corporate	233,624			240,595
	$	1,326,283		$	1,330,234