Reportable Segment Information

3 Months Ended

Mar. 30, 2019

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 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 general corporate expenses. These unallocated general corporate expenses include the net costs of the Corporation's corporate operations. 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, IT infrastructure, 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 was as follows (in thousands):



	Three Months Ended
	March 30, 2019			March 31, 2018
Net Sales:
Office furniture	$	353,511		$	380,915
Hearth products	125,945			124,154
Total	$	479,456		$	505,069

Income Before Income Taxes:
Office furniture	$	(1,055	)	$	84
Hearth products	17,609			17,114
General corporate	(12,877		)	(13,512		)
Operating income	3,677			3,686
Interest expense, net	2,111			2,224
Total	$	1,566		$	1,462

Depreciation and Amortization Expense:
Office furniture	$	11,060		$	10,986
Hearth products	2,056			1,962
General corporate	5,924			5,497
Total	$	19,040		$	18,445

Capital Expenditures (including capitalized software):
Office furniture	$	10,319		$	11,577
Hearth products	4,998			2,938
General corporate	3,779			1,816
Total	$	19,096		$	16,331

	As of March 30, 2019			As of December 29, 2018
Identifiable Assets:
Office furniture	$	840,160		$	797,574
Hearth products	364,849			352,060
General corporate	218,387			252,210
Total	$	1,423,396		$	1,401,844