Reportable Segment Information

9 Months Ended

Sep. 28, 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						Nine Months Ended
	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Net Sales:
Office furniture	$	484,755		$	471,687		$	1,247,778		$	1,276,480
Hearth products	140,631			139,433			383,090			383,323
Total	$	625,386		$	611,120		$	1,630,868		$	1,659,803

Income Before Income Taxes:
Office furniture	$	51,162		$	45,721		$	68,180		$	64,898
Hearth products	23,772			21,824			54,743			55,250
General corporate	(14,278		)	(13,919		)	(35,342		)	(35,776		)
Operating income	60,656			53,626			87,581			84,372
Interest expense, net	2,205			2,522			6,795			7,375
Total	$	58,451		$	51,104		$	80,786		$	76,997

Depreciation and Amortization Expense:
Office furniture	$	11,232		$	11,012		$	33,540		$	33,202
Hearth products	2,291			2,026			6,521			6,080
General corporate	5,863			5,569			17,777			16,605
Total	$	19,386		$	18,607		$	57,838		$	55,887

Capital Expenditures (including capitalized software):
Office furniture	$	6,524		$	10,324		$	29,190		$	35,321
Hearth products	3,204			2,150			10,779			6,317
General corporate	2,856			2,181			10,222			5,341
Total	$	12,584		$	14,655		$	50,191		$	46,979

							As of September 28, 2019			As of December 29, 2018
Identifiable Assets:
Office furniture							$	872,501		$	797,574
Hearth products							379,534			352,060
General corporate							218,441			252,210
Total							$	1,470,476		$	1,401,844